UK new car market sees bumper June as EV sales surge

The UK new car market recorded its strongest June performance since 2019, with registrations rising by 6.7% to 191,316 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

One in four new buyers opted for a battery electric vehicle (BEV), signalling growing consumer interest in electrified mobility, but industry leaders warn this growth is still falling short of government targets.

BEV sales soared by 39.1% to 47,354 units, accounting for 24.8% of the total market in June. Plug-in hybrid (PHEV) registrations also surged, up 28.8% to 21,382, while hybrid electric vehicles (HEVs) bucked the trend, declining -8.5% to 23,835 units.

Despite the strong performance, BEVs remain below the 28% market share mandated for 2025. Over the first half of the year, BEV registrations climbed 34.6% to 224,841 units, but their share still sits at 21.6%.

The gap between market performance and regulatory targets has come at a steep cost. Since the Zero Emission Vehicle Mandate came into force, manufacturers have absorbed more than £6.5 billion in discounts to stimulate EV demand.

Fleet registrations led the growth, rising 8.5% to 114,841 units and making up the bulk of the market. Private demand grew by 5.9% to 71,616 units, but still represented just 37.4% of new car sales. Business registrations dropped -15.8% to 4,859 units.

Petrol car registrations fell -4.2%, while diesel remained flat (+0.2%). Combined, internal combustion engines still made up just over half (51.6%) of the market, while total electrified vehicles (EVs, PHEVs, HEVs) captured 48.5%.

The SMMT warned that policy shortcomings are threatening the UK’s electric vehicle transition. The Vehicle Excise Duty Expensive Car Supplement (ECS) now applies to most BEVs, imposing an estimated £360 million cost this year alone. Combined with limited public charging infrastructure and lack of purchase incentives, these policies are suppressing private BEV demand.

A recent SMMT Automotive Business Leaders Barometer survey found that 55% of automotive CEOs believe the UK is “significantly behind plan” to meet its 2030 target of ending the sale of new petrol and diesel-only cars.

Mike Hawes, SMMT Chief Executive, said: “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs.

“That EV growth, however, is still being driven by substantial industry support with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels.

“As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”

The SMMT is calling on government to amend the ECS to exclude most BEVs, and cut VAT on new electric vehicles and public charging. According to the organisation, these measures could add 267,000 additional BEVs to UK roads over the next three years, potentially reducing CO₂ emissions by six million tonnes annually.

While June’s numbers show momentum, experts caution that maintaining and accelerating EV adoption will require sustained policy support, particularly to close the gap in private sector uptake and long-term market confidence.