UK Electric Car Sales Rise in 2025 but Fall Short of Government Target

UK new car registrations in 2025 surpassed two million for the first time since the pandemic, reflecting ongoing changes in the automotive market and government policies on zero-emission vehicles.

Battery electric vehicles (BEVs) accounted for approximately 473,340 of the new cars registered, representing 23.4% of the total market share. The government had set a target of 28% EV market share for 2025 under its Zero Emission Vehicle (ZEV) mandate, but this threshold was not achieved over the full year.

The Society of Motor Manufacturers and Traders (SMMT) estimated that manufacturers provided discounts totaling more than £5 billion during 2025, with an average of around £11,000 per electric vehicle sold. These incentives were intended to encourage EV adoption and help manufacturers align with the ZEV mandate requirements.

In December 2025, electric vehicles made up 32% of new car sales, marking the only month in which the 28% ZEV target was exceeded. This monthly figure contrasted with the annual average, where the target was not met.

What the numbers show

• 2,020,373 new cars were registered in the UK in 2025
• About 473,340 of these were battery electric vehicles
• Manufacturers spent an estimated £5 billion on EV discounts in 2025
• December 2025 saw EVs reach a 32% share of new car sales

SMMT chief executive Mike Hawes described the scale of discounts per electric vehicle as unsustainable. The SMMT also stated that there is a growing gap between consumer demand and the government's ambitions for electric vehicle uptake.

The SMMT urged the government to accelerate its planned review of the ZEV mandate, which was originally scheduled for 2027. The organization called for this review to be brought forward and completed in 2026.

The SMMT estimated that manufacturers spent approximately £5.5 million in 2025, averaging about £11,000 per electric vehicle sold, to incentivize buyers and support compliance with the ZEV mandate. These figures highlight the financial measures taken by the industry to promote electric vehicle sales.

Industry reaction

The SMMT stated that the growth in electric vehicle sales remains fragile, despite the increase in adoption rates. The organization also called on the government to review the ZEV mandate sooner than planned, emphasizing the need for timely policy adjustments.

SMMT representatives have continued to highlight the challenges faced by manufacturers in meeting government targets, pointing to the high level of incentives required and the gap between policy goals and consumer demand.

* This article is based on publicly available information at the time of writing.