In a surprising turn of events for Britain's automotive sector, Stellantis has successfully navigated the UK's strict new Zero Emission Vehicle (ZEV) mandate, selling enough electric vehicles to avoid substantial government penalties.
The car manufacturing conglomerate, which owns popular brands including Vauxhall, Peugeot, and Citroën, revealed that electric models accounted for more than 22% of its UK sales during the first half of 2024. This performance comfortably exceeds the government's requirement of 22% zero-emission sales for this year.
A Mixed Performance Picture
While Stellantis celebrated its electric vehicle success, the company's overall UK sales told a different story. Total registrations fell by 4.3% compared to the same period last year, with petrol and diesel models experiencing the most significant declines.
The figures reveal a dramatic shift in consumer behaviour:
- Electric vehicle sales increased substantially across multiple brands
- Traditional combustion engine models faced declining demand
- Company car buyers led the transition to electric vehicles
Navigating the ZEV Mandate
The UK's ZEV mandate represents one of the most ambitious climate policies in the automotive world. Manufacturers failing to meet the annual electric vehicle sales targets face fines of £15,000 per non-compliant vehicle sold.
Maria Grazia Davino, Stellantis UK Managing Director, commented: "Our performance demonstrates our commitment to the electric transition, though we continue to face market challenges including insufficient charging infrastructure and mixed consumer incentives."
Market Challenges and Future Outlook
Despite meeting regulatory requirements, Stellantis executives expressed concerns about the broader market conditions. The company noted that while business and fleet buyers are embracing electric vehicles, private retail customers remain more hesitant.
Key challenges identified include:
- Inconsistent government support for private EV buyers
- Charging infrastructure gaps, particularly in rural areas
- Higher upfront costs compared to traditional vehicles
- Ongoing consumer range anxiety
The automotive giant remains cautiously optimistic about meeting next year's increased target of 28% zero-emission sales, though company officials stress that continued government support and infrastructure investment will be crucial for long-term success.
