London, UK – Battery electric vehicle (BEV) registrations in the United Kingdom saw a modest 9.1% increase in July, reaching a 21.3% market share, even as the broader new car market experienced a 5.0% decline, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). This performance, the weakest July since 2022 and 10.8% below pre-pandemic 2019 levels, underscores the market's sensitivity to economic factors and highlights the ongoing challenge of accelerating BEV uptake to meet the ambitious Zero Emission Vehicle (ZEV) Mandate targets.

While demand from private and fleet buyers saw declines of 3.2% and 6.5% respectively, the smaller business sector recorded a 10.4% increase in registrations. Within the electrified segments, plug-in hybrid electric vehicles (PHEVs) demonstrated robust growth, rising by 33.0%. However, the 9.1% increase for BEVs was notably more modest compared to the 34.6% growth observed in the first half of 2025, making July the second weakest month for BEV growth this year, following April’s market distortions due to tax changes.

The recently announced Electric Car Grant (ECG) is poised to provide a crucial fiscal incentive for BEV adoption, offering discounts of up to £3,750. However, the lack of confirmed model eligibility has prompted some prospective buyers to defer purchases pending clarity. This uncertainty, coupled with a broader absence of governmental purchase and charging incentives, and the newly applied VED Expensive Car Supplement (ECS) – estimated to impose an effective fine of over £360 million on BEVs bought from April this year alone – are collectively impeding BEV demand. The current BEV market share of 21.3% remains significantly short of the 28% required by the ZEV Mandate, underscoring the urgency for accelerated uptake.

Industry leaders have consistently advocated for stronger fiscal incentives for private BEV sales as the most impactful measure to stimulate demand, foster economic growth, and bolster the UK’s automotive manufacturing base, aligning with the government’s new Industrial Strategy. Mike Hawes, SMMT Chief Executive, commented, “July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty. Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.”

Conversely, hybrid electric vehicle (HEV) transactions declined by 10.0%, while combined petrol and diesel deliveries fell by 14.0%, yet still accounted for over half (53.0%) of July’s market. Year-to-date, the overall market remains up 2.4% at 1.18 million units, including more than a quarter of a million BEVs, driven by new model introductions and manufacturer discounting. The July decline is largely anticipated to be temporary, with the latest market outlook for 2025 revised upwards to 1.9 million units, and BEV volumes marginally adjusted to project a 23.8% share.