UK new car market grows 11.4% in June thanks to record EV share

The UK new car market has continued its robust recovery, recording an 11.4% increase in registrations in June, reaching 213,166 vehicles last month.

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), this marks the best performance for the month of June since 2019, reflecting a consistent upward trend for the automotive sector at the midway point of the year.

Growth was broad-based across all buyer segments: private registrations rose by 12.5%, fleet deliveries grew by 10.5% and business registrations saw a 17.1% increase.

Battery Electric Vehicles (BEVs) were the primary drivers of this growth, securing a 30.0% market share in June – the highest level seen so far this year. When combined with plug-in hybrids (12.5%) and standard hybrids (14.0%), electrified vehicles now account for a significant portion of new sales.

Industry leaders are encouraged by this progress. Melanie Lane, CEO of Pod, one of the UK’s largest EV charging providers, noted: “Today’s record figures mark another important milestone for the UK’s transition to electric mobility.”

Despite the record-breaking monthly share, a notable disconnect remains between market performance and government-mandated targets. Year-to-date, BEVs account for 25.0% of the market. To reach the current annual target of 33%, BEV sales would need to exceed 40% for the remainder of the year – a feat industry experts view as highly unlikely.

Reforming mandate targets

The SMMT reports that three out of every four new car buyers are still opting for non-electric powertrains. Manufacturers have already deployed more than £12 billion in discounts to spur demand, but the industry warns that these unsustainable costs are hurting profitability and threatening investment.

“June’s performance is very strong… But even these record levels are still not enough to meet mandated targets,” said Mike Hawes, SMMT Chief Executive. “Reforming the mandate now is essential not just to keep the transition on track but to protect the UK’s competitiveness, attract investment and safeguard jobs.”

While supply chain constraints have eased, consumers remain selective. James Hosking, Managing Director of AA Cars, highlighted that while 11% growth shows “momentum,” buyers are still cautious regarding household budgets.

“Electric and hybrid vehicles remain a big part of that story,” Hosking said, citing a wider range of models and potential running cost savings as key drivers. However, he cautioned that upfront prices and charging concerns remain significant barriers for many households.

As the market continues to evolve, the industry is calling for a more stable, long-term policy environment to ensure the UK remains a competitive destination for automotive production and retail.