Carmakers’ Ability to Meet 2024 Electric Vehicle Sales Target Relies on Corporate Fleet Buying, Says SMMT

The automotive industry is facing a pivotal moment as carmakers strive to meet the legally mandated 22% electric vehicle sales target by 2024. According to the Society of Motor Manufacturers and Traders (SMMT), the ability to achieve this target is heavily reliant on corporate fleet buying.

In a recent report, the SMMT highlighted that the demand for new cars has been driven primarily by corporate fleet purchases, with non-corporate retail demand continuing to decline. This shift in purchasing behavior has been attributed to the challenging economic climate and the ongoing cost of living crisis.

Despite the overall growth in the market, the uptake of electric vehicles has remained at 16% in 2024, falling short of the 22% target set by regulators. This has raised concerns among carmakers who may face financial penalties for not meeting the mandated sales quota.

The SMMT chief executive, Mike Hawes, emphasized the importance of implementing the right policies to stimulate the private consumer market and accelerate the transition to zero-emission vehicles. He also highlighted the need for a faster and fairer transition to electric vehicles to meet environmental goals.

The report also underscored the significance of hybrid vehicles in the transition to electrified powertrains, with hybrid cars accounting for a significant portion of new registrations. This shift towards electrified powertrains is seen as a crucial step in reducing carbon emissions and promoting sustainability in the automotive industry.

As the automotive industry navigates the challenges of meeting electric vehicle sales targets, it is clear that corporate fleet buying will play a crucial role in driving the transition to electric vehicles. With the right policies and incentives in place, carmakers can work towards achieving a more sustainable and environmentally friendly future for the automotive sector.