Record-breaking January for EV sales: comment
Comment on record-breaking January EV sales

By Colin Walker
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Commenting on the latest SMMT sales data for January showing that 21.3% of new cars sold were EVs [1] Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit (ECIU), said:
“It’s a record-breaking January for EV sales, and the sixth month on the bounce in which more than one in five new cars sold in the UK was an EV. This comes on the back of the car industry as a whole successfully complying with the Government’s EV targets in 2024, with prices driven down as manufacturers compete for sales.
“Last January, EVs accounted for 14.7% of all cars sold [2], but sales grew throughout the year, allowing the industry as a whole to comply with the ZEV mandate in its first year. [3] This has been a stronger start to the year, meaning the car industry looks even better set to hit its EV targets in their second year.
“As prices comes down, more and more British drivers are able to make the shift to cheaper and cleaner electric driving. And it doesn’t stop there – the new EVs being sold today enter the second-hand market, where most of us buy our cars, in three to four years’ time. By accelerating the growth of this market, the mandate will further assist millions more families to cut back on driving costs by going electric.
“The mandate also provides certainty for industry to continue to invest in the UK - from pouring billions into our charging network, to investing in the supply chains that will enable our car industry to make the transition to building the electric cars of the future. Make no mistake, the extent to which our car industry is able to make this transition will determine its future. Go fast, and billions more in economic output could be generated and 167,000 new jobs created. Get stuck producing the petrol and diesel vehicles that our major export markets are moving away from, and our car industry could collapse – economic output falling by 73%, and over 400,000 jobs being lost”. [4]
The ZEV Mandate was developed by the previous Conservative Government and introduced by them on the 1st January 2024.
When the ZEV mandate was first introduced in 2024, its EV sales target for the year was 22%. Sales in the first month of the year were 14.7%, 7.3 percentage points short of the annual target. However, sales grew as the year progressed, reaching 19.6% for the full year. Combined with extra credits earned from reductions made by reducing the CO2 emissions of the petrol and diesel cars it sold, the industry was able to meet its 22% target for the year. In 2025, the EV sales target has risen to 28%. With sales in the first month of the year at 21.3%, the industry is 6.7 percentage points short of the annual targets, meaning that it has made a stronger start to the year in terms of meeting its ZEV mandate obligations than it did in 2024. Given the extra credits it will also earn in 2025 from CO2 allowances, this suggests that the industry has every chance of repeating its success in meeting its ZEV mandate obligations.
Notes to editors:
1. EV share rises despite contracting market but tax hikes threaten targets: https://www.smmt.co.uk/2025/02/ev-share-rises-despite-contracting-market-but-tax-hikes-threaten-targets/
2. January 2024 New Car Registrations: https://media.smmt.co.uk/january-2024-new-car-registrations/
3. EV targets hit in first year – analysis: https://eciu.net/media/press-releases/2025/ev-targets-hit-in-first-year-analysis
4. CBI Economics: Electrifying Growth: Exploring what electrification could mean for the UK’s automotive industry: https://www.cbi.org.uk/media/qoxp3pn4/cbi-economics-eciu-ev-sector-report-2024.pdf
5. A background briefing on common myths and misunderstandings around EV sales and the ZEV Mandate is available to downland here.
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, Tel: +44 (0)7894 571 153, email: george.smeeton@eciu.net