Registrations of electric cars rose in February but market share declined for a second month, prompting renewed calls for regulatory changes.

New figures from the Society of Motor Manufacturers and Traders (SMMT) show the UK new car market grew 7.2% last month to 90,100 registrations, hitting the highest February volume in 22 years.

Registrations were primarily driven by growth in the private market, which rose 17.6% year on year. Fleet demand increased by 1.8%, while the lower-volume business segment, referring to operators with fewer than 25 vehicles, declined by 12.7%. Fleets remained the largest source of new car registrations, accounting for 59.4% of the market.

Battery electric vehicle (BEV) uptake rose 2.8% to 21,840 units, representing 24.2% of the market. That’s down from 25.3% a year ago, marking the second consecutive month of decline in BEV market share compared with the same period last year. The SMMT said the dip that partly reflects a strong start to 2025, when new BEV buyers sought to avoid April’s introduction of new tax rates, and comes after a strong push at the end last year to comply with the ZEV mandate.

Plug-in hybrids recorded the biggest jump in demand, up 43.5% to claim an 11.6% market share, while hybrid electric registrations rose 3.3% to a 13.1% share. Petrol demand also grew, by 5.2% but share slipped to 46.5%, while diesel volumes continued to decline, down 3.8% to just 4.5% of the market.

Year-to-date, the new car BEV market share now stands at 22.0%, two-thirds of the 33% share mandated for 2026 and with rapid growth needed to meet the ZEV mandate target. The SMMT said a holistic review of the transition is needed – and must be completed urgently as buyer confidence is anticipated to be weakened further amid plans to introduce a pay per mile tax for EVs (eVED) from 2028.

The industry body warned again that manufacturers have already invested billions in new models and discounts to drive demand, now with support from the Government’s Electric Car Grant, but said circumstances have changed beyond expectation since the ZEV mandate regulation was set in January 2024 under the Conservatives.

Mike Hawes, SMMT chief executive, commented: “The UK’s new car market is continuing to recover and EV volumes are growing too, even if market share remains disappointing. All eyes are now on ‘new plate’ March, which typically sets the tone for the year – and given sales of new pure petrol and diesel cars are currently required to end in less than four years, EV uptake must accelerate rapidly. Manufacturers have committed monumental investment to drive demand but such costs cannot be sustained indefinitely, making a review of the transition an urgent priority to ensure ambition matches natural demand.”

Top-selling new cars in February included the Ford Puma in first place, followed by the Kia Sportage, Mini Cooper, Tesla Model 3 and Jaecoo 7.

Improving EV infrastructure and support is key to sustaining progress

Cox Automotive Europe also said performance against the ZEV mandate remains a concern.

Philip Nothard, insight director, commented: “This is particularly pertinent given softer private demand and continued reliance on fleet and business channels, especially as the majority of drivers (65%) still perceive EV ownership costs to be higher than those of ICE vehicles. With broader economic and political uncertainty weighing on consumers, attention now turns firmly to March, a pivotal month that will offer a clearer indication of whether the market can build sustainable momentum.”

But Nick Williams, managing director of Lex Autolease, said February’s figures show strong appetite remains for EVs.

‘Interest in EVs continues to build as more drivers become comfortable with the technology and understand the running cost benefits.

“What will really help maintain that momentum is making charging simpler and more affordable. From April, renters, flat owners, homeowners without driveways and businesses will be able to save up to £500 on the cost of installing an EV charge point.

“For many people without off-street parking, this is exactly the kind of practical help that will make going electric easier. A focus on improving infrastructure, alongside support for all parts of the EV market, will be key to sustaining progress through 2026.”

Jon Lawes, managing director at Novuna Vehicle Solutions, also said it was a positive sign to see EV registrations still moving up as more drivers and fleets see the case for switching.

“But the Spring Statement was a missed opportunity to ease the real cost pressures EV drivers face and to provide the clear, consistent direction the market needs,” he added.

“Uncertainty around how eVED will work risks muddying the waters just as economic volatility is making households and fleets more cautious. If the Government wants adoption to accelerate, it needs to remove the mixed messages and back the transition with clarity and practical support, so households and fleets can commit with certainty.”

Melanie Lane, chief executive at charging provider Pod, remarked: “Today’s SMMT figures are a reminder that the transition doesn’t move in a straight line and that more support is needed to resolve cost pressures for consumers looking to make the switch. A major incentive is expanding access to affordable charging, which is why the extension and boost to OZEV’s charging grants for renters, landlords, flat owners, and businesses from £350-£500 is critical. Those eligible should consider applying for the grants in their final year, future-proofing homes and businesses as the UK electrifies.”

Work still to be done to remove further barriers to charging

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, welcomed the figures showing the biggest February for over two decades but said a level of uncertainty remains for both consumers and manufacturers amidst ongoing economic challenges and regulatory changes.

“While electric vehicle sales have stagnated in the last couple of months, news that public electric vehicle charging should qualify for the reduced 5% VAT rate could be a landmark moment for electric vehicle owners in the UK, addressing affordability challenges and levelling the playing field for consumers. However, there is still work to be done to remove further barriers to charging, as consumers without access to off street parking are still lacking accessible infrastructure.”

Maria Bengtsson, EY UK & Ireland mobility leader, spotlighted the 5.2% year-on-year growth in new petrol cars last month.

“Policymakers will be monitoring this trend closely given the slowdown in BEV sales growth over the last couple of months and the implications for whether BEV targets can realistically be met this year. However, ongoing geopolitical events and the impact on oil and gas prices may dampen petrol and diesel sales in the next few months.”

Bengtsson also highlighted that transitioning to electric fleets can deliver substantial operating cost savings for businesses.

“EY’s latest report in collaboration with Eurelectric – the federation of the European electricity industry – revealed that fleet electrification could help unlock significant operating cost savings for businesses, providing further rationale and incentives for companies with large fleets to transition to cleaner and greener vehicles.”