According to data released by the Society of Motor Manufacturers and Traders (SMMT), new car registrations in the UK rose by 6.7% year-on-year in June to 191,316 units, marking the second consecutive month of growth. It was the best-performing June since 2019, helping to lift the total registrations in the first half of 2025 to 1,042,219 units, up 3.5% year-on-year, though still 17.9% below pre-pandemic levels.
By powertrain type, battery electric vehicle (BEV) sales in June surged 39.1% year-on-year to 47,354 units, achieving a market share of 24.8%. Plug-in hybrid vehicle (PHEV) sales jumped 28.8% to 21,382 units, while hybrid electric vehicles (HEVs) declined 8.5% to 23,835 units. Petrol car sales fell 4.2% to 88,029 units, and diesel car sales remained virtually flat at 10,716 units (+0.2%). Combined, petrol and diesel vehicles now account for just 51.6% of the market.
In the first half of 2025, BEV registrations rose 34.6% year-on-year to 224,841 units, giving them a 21.6% market share-still short of the 28% mandated by UK regulations. Notably, automakers have provided £6.5 billion in consumer incentives over the past 18 months to achieve even this level of EV adoption.
In a recent SMMT survey of automotive industry CEOs, 55% of respondents said they believe the UK is significantly behind schedule in achieving the goal of ending the sale of new petrol and diesel-only cars by 2030.
Two key factors are currently dampening private demand for EVs in the UK:
Lack of government purchase incentives and charging subsidies.
Stricter fiscal measures, such as the Expensive Car Supplement (ECS), which has cost EV buyers over £360 million in additional tax since April 2025 alone.
Industry leaders unanimously agree that financial incentives for private EV buyers are critical to boosting demand, driving economic growth, and strengthening the UK's automotive manufacturing base. Such policies would also align with the UK government's new industrial strategy.
SMMT Chief Executive Mike Hawes stated:
"Two consecutive months of market growth is a positive sign, and the strong performance of EVs is encouraging. However, this progress is currently driven largely by manufacturer support and unsustainable discounting. EV market share remains below mandated targets. International experience shows that government incentives significantly accelerate market transformation-without them, our shared climate goals are at risk."
Experts recommend reforming the ECS to exempt most BEVs and cutting VAT on new EVs and public charging, as key steps to stimulate demand. If implemented, such policies could make the UK a leader in vehicle affordability and decarbonization. Over three years, these changes could result in an additional 267,000 EV sales and reduce carbon emissions by 6 million tonnes annually.
