1 in 4 New Cars in 2025 Were EVs But Sales Pace Still Too Slow

1 in 4 New Cars in 2025 Were EVs But Sales Pace Still Too Slow image

Electric cars captured nearly a quarter of all new vehicle registrations in 2025, according to data released by the Society of Motor Manufacturers. The milestone represents 473,348 new EVs hitting UK roads – exceeding the combined totals from 2021 and 2022.

EV registrations jumped 23.9% as buyers responded to the Electric Car Grant and manufacturer incentives throughout the year. The growth accelerated significantly in the final months of 2025.

Traditional vehicle sales moved in the opposite direction. Petrol car registrations dropped 8% while diesel sales fell 15.6%.

Mixed Signals on Progress

December showed particularly strong EV adoption, with battery electric vehicles accounting for one in three new registrations. Electrified models – including plug-in and full hybrids – captured 56.4% of the market by year’s end.

The full-year BEV share reached 23.43%. That falls short of the 28% target outlined in the ZEV mandate.

The SMMT criticized what it called “confusing messaging” from government officials despite the positive registration numbers. The trade organization warned that manufacturer subsidies driving EV sales remain “unsustainable” long-term.

Mike Hawes, SMMT chief executive, highlighted the contradiction in policy signals.

“Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high. Government has stepped in with the Electric Car Grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals.”

Industry Calls for Consistency

Charging infrastructure providers pushed back against calls to weaken existing EV policies. Melanie Lane, chief executive at Pod, emphasized the sector’s track record of meeting ambitious targets.

“Every year the EV sector faces new hurdles and yet every year it continues to deliver record figures,” Lane said.

She urged officials to maintain the ZEV mandate that’s supported major UK electrification investments. Converting consumer affordability into sustained growth will require consistent policies, lower energy costs, and confidence-building measures heading into 2026.

Vicky Edmonds, CEO of EVA England, pointed to December’s results as proof that support measures work effectively.

“It’s been another strong year for EVs as nearly 1 in 4 went full electric, and over a third in December alone. This shows that confidence is growing and support measures are working.”

The Electric Car Grant covers roughly a quarter of the 160 EVs currently available for purchase. Manufacturers continue bearing most costs associated with demand generation, according to SMMT analysis.

Tesla Dominates Sales Rankings

Larger SUVs maintained their grip on EV sales despite rapid expansion in smaller, affordable models. The Tesla Model Y led all vehicles with 24,298 registrations, followed by the Model 3 at 21,188 units.

Audi’s Q4 and Q6 e-tron models secured strong positions alongside the Ford Explorer and Skoda Enyaq. The BMW i4 ranked sixth as the only saloon beyond Tesla’s offerings to crack the top performers.

Smaller SUVs claimed the final three spots in the best-seller rankings:

  • Kia EV3 – over 10,000 registrations
  • Skoda Elroq – over 10,000 registrations
  • Volvo EX30 – over 10,000 registrations

The results reflect growing consumer acceptance of electric powertrains across vehicle segments. Manufacturer discounting strategies and expanding model lineups contributed to the broader adoption throughout 2025.

Government officials face pressure to clarify long-term EV policy direction as the industry seeks certainty for future investments and consumers evaluate their next vehicle purchases.

Nash Peterson avatar
Nash Peterson