January saw a surge in electric car interest with a 41.6% sales increase. EV sales were 21% of registrations, while the total market shrank.
Electric cars comprised 21% of new registrations, almost 140,000 cars. This share is the highest ever for January, marking a 41.6% increase from last year.
Now, electric cars rank second, surpassed only by petrol cars. Petrol cars dropped 15% and now account for just over 50% of registrations.
The whole market went down 2.5%. Diesel cars held just over 6% of sales, while hybrids reached 13%. Plug-in hybrids hit 9%, showing that people like electric or partly electric cars.
Car makers still worry, though. They say they need incentives and that the government target might not be reachable. They want more tax breaks too.
Rules say car firms face fines of about £15,000 per car if EV sales miss the 28% goal. It rose from 22% in 2024.
The government wants all new cars zero emission by 2030. They are checking how to make it easier to achieve.
Companies below target can buy credits from companies above the target. They can also cut emissions elsewhere to compensate.
Last year, they used this plan, which helped the industry hit its 22% target. However, actual EV sales were a bit under 20%.
Car sellers warn EV sales might only hit 23.7% this year. This requires offers that cost £4.5 billion last year.
Company cars get tax breaks. The sellers want consumer incentives, too, and to stop a new car tax, because this would impact EVs.
Electric cars over £40,000 are tax free now. The new tax plan would change that.
One CEO said EV demand is growing, but too slow. He thinks cars need to be more affordable for people.
He said taxing electric cars makes no sense right now. He wants to help people switch to EVs to help reach goals.
An expert called the sales a good sign. The car industry could hit its goal if sales keep growing.
He said it was a record-breaking January for EV sales. EVs are over one in five new cars sold, and car prices have declined via competition.