UK Car Sales Surge in June as Electric Vehicles Hit New Milestone
Nearly one in four buyers chose an electric vehicle, reflecting a growing shift towards greener transport.
The UK’s new car market saw its best June performance in six years, with sales rising 6.7% year-on-year to 191,316 new registrations, according to the Society of Motor Manufacturers and Traders (SMMT). Battery Electric Vehicles (BEVs) experienced a strong boost in June, with registrations up 39.1% to 47,354 units, making up 24.8% of all new cars sold that month.
Other electrified vehicles also saw notable changes:
Plug-in Hybrid Electric Vehicles (PHEVs) rose 28.8% (21,382 units)
Hybrid Electric Vehicles (HEVs) dropped 8.5%
Petrol vehicles fell by 4.2%
Diesel vehicles remained flat, with just a 5.6% market share.
This means nearly half of all new cars sold in June were electrified in some form.
Fleet Sales Drive Growth
Much of the growth came from fleet buyers, who accounted for 114,841 registrations—an 8.5% increase. Private sales also rose by 5.9%, while business registrations declined 15.8%.
Year-to-Date Trends
So far in 2025, 224,841 BEVs have been registered, a 34.6% rise compared to the same period last year. BEVs now make up 21.6% of the total market year-to-date.
Combined plug-in sales (BEVs + PHEVs) have reached over 332,000 units, showing strong interest, especially among fleet operators.
However, despite this momentum, BEVs still fall short of the government’s 2025 target of 28%, suggesting more support is needed to meet the UK’s climate commitments.
Incentives and Policy Urgently Needed
SMMT Chief Executive Mike Hawes welcomed the positive figures but issued a clear warning: “This growth is currently being sustained by manufacturer support and deep discounts—not long-term policy.”
He urged the UK government to:
Cut VAT on new EV purchases
Reform the threshold for luxury car tax (VED)
Align public EV charging VAT rates with home charging (currently 20% vs. 5%).
The SMMT also highlighted that £6.5 billion in discounts have been offered by manufacturers over the last 18 months to encourage EV uptake—an approach that may not be financially sustainable.
Despite the strong June performance, overall car sales remain 18% below pre-pandemic levels. However, the steady rise in EV sales reflects broader European trends, where plug-in vehicles account for around a quarter of new registrations.
The UK car market is clearly bouncing back, with electric vehicles leading the charge. But without urgent government action, the pace of transition may stall—jeopardising both climate targets and industry stability.
The message from SMMT is clear: EV momentum is real, but it needs meaningful, long-term support to last.
To explore the full story, head to: https://www.smmt.co.uk/bumper-june-for-uk-new-car-market-as-one-in-four-buyers-goes-electric/
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