The UK’s new-car market has recorded its strongest June since 2019, according to pre-release figures from the Society of Motor Manufacturers & Traders (SMMT). Battery-electric vehicle (BEV) registrations rose 34.6 percent year-on-year in the first half of 2025, driven by aggressive fleet discounting as manufacturers seek to avoid zero-emission vehicle (ZEV) mandate penalties. However, private buyer demand remains relatively muted, leaving BEV market share below government targets.
A total of 224,838 battery-electric vehicles were registered between January and June, with June itself contributing 47,400 units — representing nearly one in four new cars for the month. Overall, June new-car registrations reached 191,200 units, up 6.8 percent from a year earlier and marking the best June result in six years. BEVs accounted for 21.6 percent of all registrations in the first half, compared with 16 percent a year ago, but still short of the government’s 28 percent ZEV mandate for 2025.
The surge in BEV registrations is largely attributed to fleet renewal cycles and targeted discounting. “Fleet and business demand are currently powering the market, with many manufacturers focusing incentives on high-volume electric models,” the SMMT noted. Data from New AutoMotive confirms this shift, with BEV sales climbing 45.5 percent in June. Tesla’s updated Model Y led the field with 7,891 units sold — a 12 percent year-on-year rise — while Chinese manufacturer BYD quadrupled its monthly volume to 2,498 cars. Ford posted the fastest first-half growth among established carmakers.
SMMT has cautioned that the sustainability of the current growth depends on continued manufacturer incentives and supportive government policy, including potential VAT cuts on EVs and public charging. Analysts also warn of lingering headwinds such as elevated consumer finance costs, ongoing supply chain disruption, and uncertainty around post-2026 trade agreements with the EU and US.
Despite the recent performance, the sector faces an uphill challenge to reach the government’s ZEV-mandate target. For 2025, carmakers are required to ensure that 28 percent of their sales are zero-emission vehicles or face penalties of up to £15,000 per non-compliant vehicle. A mini-deal between the UK and US in June lowered export duties on up to 100,000 vehicles to 10 percent, providing some relief for UK-based manufacturers amid a broader cost-of-living squeeze.
Looking ahead, the SMMT will release definitive June data next week, which should clarify whether private BEV uptake is beginning to close the gap with fleet-driven demand. In parallel, the industry is pressing for a faster rollout of charging infrastructure, as local authorities race to access the £381 million LEVI fund before September.
