The Society of Motor Manufacturers and Traders reported that electric car sales jumped 39% in June compared to the same month in 2024. The 47,354 new battery electric vehicles registered last month gave EVs a 24.8% share of all new car sales.
Plug-in hybrids also performed well with a 29% increase year-on-year, capturing 11% of new registrations.
Traditional fuel vehicles showed mixed results. Petrol registrations dropped 4% while full hybrids fell 8.5%. Diesel sales remained flat.
Government targets remain out of reach
Despite the recent growth, petrol and diesel vehicles still dominated the first half of 2025 with 52% of all registrations. The trade body warned that without additional government support, the industry won’t meet this year’s electric vehicle targets.
EV registrations are up 34.6% for the first six months of the year, but their 21.6% market share falls short of the 28% target set in the government’s ZEV Mandate.
Mike Hawes, SMMT chief executive, acknowledged the positive trends but highlighted ongoing challenges.
“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.”
Hawes pointed to other countries where government incentives accelerated EV adoption.
“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.”
Industry calls for policy changes
The SMMT identified several barriers limiting EV demand. These include the absence of purchase incentives, insufficient charging infrastructure support, and what it called “fiscal disincentives” like April’s tax changes.
The organization outlined specific policy recommendations to boost private EV purchases:
- Cutting VAT on new electric vehicles
- Adjusting the Expensive Car Supplement to exclude most EVs
- Reducing VAT on public charging
According to the SMMT’s analysis, implementing these measures would result in an additional 267,000 battery electric vehicles on UK roads over three years – rather than fossil fuel alternatives.
This shift would cut CO2 emissions by six million tonnes annually.
The data reflects the ongoing tension between ambitious climate targets and market realities. While manufacturers continue heavy discounting to drive EV sales, the pace of adoption suggests current policies aren’t sufficient to meet the government’s electrification timeline.
