EV Sales Surge While New Car Market Contracts

EV Sales Surge While New Car Market Contracts image

Electric cars defied the broader new car market trends in August, posting growth of almost 15% to capture more than a quarter of all new registrations.

Latest data from the Society of Motor Manufacturers and Traders (SMMT) shows overall new car registrations fell 2% in August while EVs and plug-in hybrids surged ahead.

August typically represents the quietest month for new car sales. The market traditionally sees a surge in September with the new number plate change.

The SMMT cited several factors driving EV demand despite stalling interest in petrol and diesel vehicles. These included broader model choice, news of the Government’s Electric Car Grant, and continued manufacturer discounts – including in-house versions of the ECG.

EV registrations climbed 14.9% to secure a 26.5% market share in August.

This marks the highest share in 2025 and the fourth highest on record. Plug-in hybrids performed even better, jumping 69% to capture almost 12% market share.

ZEV Mandate Targets Still Out of Reach

August’s performance brings positive news for the EV sector but highlights the gap between current sales and ZEV mandate requirements. The mandate requires 28% of all new car registrations to be zero emissions by the end of 2025.

Year-to-date figures show EVs at just 22% of total registrations.

The SMMT expects EV market share to keep rising. The organization points to a quarter of all passenger cars now qualifying for the ECG and the expanding public charging infrastructure.

Mike Hawes, SMMT chief executive, said the August results represented a breakthrough for annual EV performance.

“August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.”

Hawes emphasized the current market conditions favor EV adoption.

“There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. With more models being added to the Government’s Electric Car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”

Nash Peterson avatar
Nash Peterson
2 months ago