Electric car demand rose again in November, accounting for over a quarter of new car sales.

New figures from the Society of Motor Manufacturers and Traders (SMMT) show a total of 151,154 new cars were registered in November, down 1.6%. Fleet registrations slightly increased, with a 0.2% change. Business registrations to sub-25 vehicle fleets soared by 18.0% but demand from private buyers fell 5.5%.

Battery electric vehicles (BEVs) however continued their 2025 growth and rose 3.6% to 39,965 units. Their 26.4% share of the market was just ahead of the 25.1% achieved in November last year but the 3.6% volume rise represented the weakest month for BEV growth in almost two years.

Hybrid electric vehicle (HEV) uptake rose slightly by 1.3% to take 13.1% of the market. The fastest growth was recorded by plug-in hybrids, up 14.8% and accounting for 11.9% of registrations.

As a result, electrified vehicles achieved a record market share for the year of 51.4%, with petrol- and diesel-powered vehicles recording their third consecutive month as a minority of registrations.

BEV registrations are now at record volumes – with 426,209 joining the road in the last 11 months – but the SMMT said their 22.7% year-to-date market share still falls significantly short of the 28% annual government target under the ZEV mandate.

However, latest data from the Energy & Climate Intelligence Unit indicates that industry is on track to hit targets for the year. While the ZEV mandate’s headline target for 2025 is 28%, it is estimated that the percentage of EVs that actually need to be sold by the industry as a whole to meet the target is 21.7%, with the remaining CO2 reductions coming from lower emission petrol/diesel cars.

Concerns are mounting though over the Government’s plans to implement the Electric Vehicle Excise Duty (eVED) pay-per-mile charge for BEVs and PHEVs from April 2028, as announced in the Autumn Budget last week.

The SMMT said the new tax will undermine demand and endanger the EV transition, despite measures announced in the Budget to extend the Electric Car Grant, uplift the threshold from which EVs will be subject to the VED Expensive Car Supplement, and pump more money into infrastructure rollout.

Mike Hawes, SMMT chief executive, said: “Even in a fragile market, zero-emission vehicle uptake continues to rise, which is exactly what we need. But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call that sustained increase in demand for EVs cannot be taken for granted. We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.”

EV pay-per-mile tax risks deterring drivers from going electric 

Many in the fleet and automotive sector agreed with the SMMT’s comments on the new tax.

Jon Lawes, managing director at Novuna Vehicle Solutions, said: “EV registrations are still rising, but the new pay-per-mile tax risks deterring drivers who are considering the switch. EV drivers will need to contribute eventually, but the real sticking point, which adds friction and creates uncertainty, is how mileage will be measured – adding another barrier just as the VED exemption ends. For many drivers, it could mean around £255 extra a year in mileage charges alone.

“At the same time, the Government is expanding the Electric Gar Grant, yet pairing incentives with new costs sends mixed signals – especially in London, where congestion charges for EVs have just begun. Personal adoption already trails business uptake, and inconsistent charging access continues to hold people back. With upfront costs finally falling thanks to stronger competition, affordability and dependable charging will be what ultimately gives drivers the confidence to go electric.”

Philip Nothard, insight director at Cox Automotive, said: “Industry concerns around the proposed eVED tax highlight the risk of undermining already-soft EV demand, potentially slowing the UK’s transition at a pivotal time.”

Meanwhile, Lex Autolease cautioned about the impact of eVED on ZEV mandate targets.

Nick Williams, managing director of Lex Autolease, said: “A rise in electric vehicle sales is welcome, but the focus must remain on meeting the UK’s ambitious zero emissions vehicle sales targets. These are stretching and rely on a stable used vehicle market, meaning the Government needs to carefully consider the potential impact of any prospective pay-per-mile charge on electric vehicles.

“We will all be watching the used battery electric vehicle (BEV) market in 2026 as it continues to mature and becomes a more cost-effective choice for drivers.  It’s important to remember that a stable and affordable new BEV market is completely reliant on a stable and affordable used BEV market – towards which we’re still working.”

And Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), added: “As the year draws to a close and the final registrations are coming in, the Chancellor’s Budget announcement has not reassured the industry. It seems that the Government support for the EV transition is insufficient and the positives from the Budget have been overshadowed by an EV pay-per-mile tax.

“In an increasingly difficult financial environment we are likely to see registrations continue to fluctuate and the pace of EV adoption determined by the measures announced last week.”

But others said EV demand remains strong.

Philipp Sayler von Amende, global chief commercial officer at Carwow, said: “The volume of EV enquiries placed with dealers via Carwow increased by a substantial 33% in November, suggesting that, while casual interest in EVs might have been undermined by the recent focus on new EV taxes, genuine demand remains very robust. We’re also seeing the share of enquiries for internal combustion engine (ICE) vehicles and EVs converging, with one in three enquiries sent to our dealer partners now for EVs. If this trend continues, we predict 2026 to be the year EV enquiries finally exceed ICE.”

Deloitte said the Government and industry will have to keep making the case for electric and emphasise the investment going into the sector, beyond the headline pay-per-mile tax announced at the Budget.

Jamie Hamilton, automotive partner and head of electric vehicles, said: “On the surface, some consumers may feel that BEVs have increased in cost, but this is not necessarily the case. The new EV mileage charge will increase running costs of electric vehicles, but changes to the Expensive Car Supplement threshold may mean some drivers are actually better off over the course of their lease period.

“The perception over cost may mean that the pace of uptake slows towards the 2035 zero-emission vehicle transition. This makes the extension to the Plug-in Car Grant [Electric Car Grant] scheme even more important, with more cars eligible for a discount. Meanwhile, it remains paramount that there is continued investment into the sector, with a focus on equitable charging infrastructure, so that all consumers have fair and accessible opportunity to charge their vehicles.”