New car registrations in the UK rose for the second month running in June on the back of strong fleet demand and soaring electric vehicle take-up.

A total of 191,316 new cars were registered; up 6.7% and hitting the highest level for the month since 2019, although the market remains 17.9% behind pre-Covid levels, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Registrations by larger fleets rose 8.5% – increasing their market share further to 60.0%, compared to 59.1% for June 2024. Sales to private buyers were up by 5.9% but the sub-25 ‘Business’ sector fell 15.8%, taking just 2.5% of the new car market.

Headline news was the rocketing demand for battery electric vehicles (BEVs); up 39.1% to 47,354 units, equivalent to a quarter (24.8%) of the market.

Plug-in hybrid electric vehicles (PHEVs) grew 28.8% to 21,382 units and an 11.2% share. The market for new hybrid electric vehicles (HEVs), meanwhile, fell by 8.5% to 23,835 registrations.

Total electrified vehicle registrations (92,571) accounted for a 48.5% market share.

In contrast, new petrol registrations declined 4.2% and diesel volumes were flat (+0.2%), meaning their combined share of the market is now just over half (51.6%).

Long-term progress needs consistent policy and faster infrastructure rollout

Across the first six months of 2025, the total market is up 6.7%, with larger fleets rising 2.8% but the Business sector falling 3.0%. New BEV registrations in H1 rose 34.6% to 224,841 units but the 21.6% market share is significantly behind the 28% mandated for this year.

While carmakers have individual targets and the Government also recently relaxed the ZEV mandate rules to give more support for automakers, the SMMT said manufacturer discounting continues to shore up EV demand, with OEMs having doled out discounts totalling £6.5bn over the last 18 months.

In a recent survey of automotive CEOs carried out for SMMT’s new Automotive Business Leaders Barometer, more than half (55%) said they believe the UK is significantly behind plan to meet the 2030 end of sale date for new cars powered solely by combustion engines.

The SMMT has called again for action on governmental purchase and charging incentives as it spotlights calls from industry bosses for fiscal incentives for private BEV sales as the biggest single action needed to boost BEV demand.

Mike Hawes, SMMT chief executive, said: “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs. That EV growth, however, is still being driven by substantial industry support, with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels. As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”

Many in the fleet and auto sector agree with him.

Jon Lawes, managing director at Novuna Vehicle Solutions, said: “The rise in EV registrations is encouraging, but we’re still short of the ZEV mandate’s 28% target – a gap that matters for fleets already under pressure to decarbonise. Recent changes to the mandate risk blunting the industry’s momentum just as we need it most. Encouragingly, the commercial sector is stepping up, especially in LCVs, where greater model choice and tighter emissions rules are driving uptake. But long-term progress will depend on consistent policy and faster infrastructure rollout to give fleet operators the confidence to scale their transition plans.”

And charging management software company Vaylens also said more support is needed for the fleet EV transition.

Russell Olive, UK director, stated: “Much of the EV take-up is driven by the fleet operators that transport our goods and services. But this is where policy and practicality need to catch-up, to support the charging of the vehicles on the road.

“It’s still cheaper to charge at home than at a public charger, which effectively penalises many businesses and fleet operators who rely on charging at depots or on the road. That’s despite the recent Spending Review’s £1.4bn commitment to EV adoption. Here, the Government missed a trick by not reducing VAT on public EV charging.

“Fleets and businesses make up 62.5% of new vehicle registrations in 2025 – meaning accessibility and affordability are crucial to hit the ZEV target. That means the industry needs more than investment.  It needs practical solutions, price clarity, open access and the tools to manage charging seamlessly across home, work and public locations. Visibility, control and flexibility will be essential to meeting EV targets.”

Nick Williams, managing director, Lex Autolease, had a comment about EV myths: “it’s important that we tackle the common misconceptions that may prevent drivers from making the switch, such as battery durability. Today’s EV batteries are built to go the distance and every new car comes with at least an eight-year, 100,000-mile battery warranty.”

Time to get our charging infrastructure right

Others also called for action on charging.

Susan Wells, director of EV & solar at Hive, said: “It’s important to remember there’s still a long way to go make the UK’s EV dream a reality and as more vehicles enter the roads the demand for a robust, cost-effective and accessible charging network becomes vital.”

Vicky Edmonds, chief executive of EVA England, said: “It’s clear now that EVs are at the forefront of consumers’ minds when they are considering a new car. One in four new cars sold are fully electric and as our research suggests, these drivers are highly unlikely to switch back. Now that the building blocks to a sustainable UK car parc are firmly in place, it’s time to get our charging infrastructure right, help more drivers gain access to affordable home charging and, crucially, help households of all income levels afford to make the positive and overwhelmingly popular switch to electric.”

And Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, commented: “As sales of battery electric vehicles continued to rise, and with the goal for zero-emission vehicles hot on the agenda, the goal now must be for electric vehicles to be supported by accessible, consumer-friendly infrastructure.

“Further growth in sales, and the sector, will rely on increased and improved charging facilities to boost mainstream electric vehicle adoption. Support and collaboration from the Government to bring its Industrial Strategy to the forefront of the auto industry will be imperative as the 2035 emission-free deadline approaches.”

David Pownall, Schneider Electric UK & Ireland’s VP power systems, also said Britain’s charging infrastructure currently presents a speed bump on the path to zero-emission travel.

“We can’t have EV drivers battling queues, broken chargers and uncertainty when out on the road. Recent research shows that some councils can’t confirm whether their charging points are working, creating unease for the UK’s existing 1.3 million EV drivers who are left unable to plan where to recharge their vehicles.

“To reinforce public trust in the shift to electric transport and bolster the growth of the EV market, we need targeted funding for the UK’s charging infrastructure. Reliable, well-placed and accessible chargers will form the backbone for a successful EV transition and drive uptake.”

Finally, Maria Bengtsson, EY UK & Ireland mobility leader, said: “Improving charging infrastructure, and the chance for businesses to optimise cost efficiencies for their fleets through technologies such as vehicle-to-grid (V2G) charging could hold the key to unlocking more consistent and buoyant growth in fleet sales going forward.”