UK driver demand for electric vehicles hit a new record in February but fleet registrations dropped.

Battery electric vehicle deliveries rose 41.7% to 21,244 units, accounting for one in four new car registrations

Battery electric vehicle (BEV) deliveries rose 41.7% last month to 21,244 units, accounting for one in four new car registrations (25.3%), new figures from the Society of Motor Manufacturers and Traders (SMMT).

But February – usually the smallest month of the year and accounting for only around 4% of annual volumes – also brought the fifth consecutive month of decline for the UK new car sector. Fleet registrations – which have been the core driver of previous market growth – fell 4.0%, dropping to a 62.5% share compared to 64.5% for February 2024. The decline was offset by a 4.6% rise in private registrations, which slightly increased their overall market share to 35.6%, while the much smaller business sector rose by 3.3%.

Alongside the soaring uptake of BEVs, plug-in hybrid vehicles (PHEVs) rose 19.3% and hybrid electric vehicles (HEVs) were up 7.9%. Diesel fell a further 15.1% to take just a 5.0% share (5.9% in February 2024) while petrol was down by 17.3% and accounted for less than half of the market (47.4% versus 56.8% in February 2024).

The SMMT said the dramatic increase in BEVs was unsurprising considering the forthcoming tax changes in April, which will see the arrival of vehicle excise duty for EVs and the introduction of the expensive car supplement (ECS).

The industry body also said that March registrations are likely to see a further surge in BEV uptake, as buyers capitalise on the new ’25 plate and take their last chance to avoid the ECS which, from 1 April will add £2,125 over six years to the cost of BEVs with a list price above £40,000.

But despite soaring BEV uptake, the SMMT warned that current uptake still falls short of the 28% target for 2025 under the ZEV mandate sales quotas – although there are flexibilities for carmakers to achieve this.

It also spotlighted again that carmakers have already discounted BEVs by more than £4.5bn over the last year to incentivise take-up, and said such industry support is unsustainable. Ahead of the outcome from the recently closed ZEV mandate consultation, the SMMT has called again for measures which afford “greater market flexibilities, incentivise private purchases and both encourage and facilitate a faster rollout of charging infrastructure”.

Mike Hawes, SMMT chief executive, said: “With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month – but, long term, EV consumers need carrots, not ever more sticks.”

Industry reaction

Aaron Jarvis (VP for EMEA) at Geotab

“EV sales are growing, and give credit where it’s due – more have been registered this year than in all of 2019. But let’s not sugarcoat it: the EV transition is hitting harder than expected and we’re set to miss 2025 ZEV mandate targets at this rate.

“Add trade uncertainty and manufacturing struggles, and carmakers are in a tough spot. They need real support. We look forward to seeing the UK government’s plan following the ZEV mandate consultation, because time is running out.”

Jon Lawes, managing director at Novuna Vehicle Solutions

“A rise in EV registrations suggests growing consumer interest, but the broader outlook remains uncertain.

Jon Lawes, managing director at Novuna Vehicle Solutions

“From April, EVs will lose their exemption from vehicle excise duty (VED), adding costs that could erode the tax advantages driving corporate adoption – particularly via salary sacrifice schemes.

“With the 2030 ban on new petrol and diesel cars looming, concerns are mounting over future tax rises, complicating long-term fleet planning. Manufacturers, reliant on incentives to meet ZEV mandate targets, now face an unpredictable landscape. Combined with geopolitical instability, this could strain supply chains and push prices higher, dampening momentum just as the sector needs acceleration.”

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte

“Pent-up demand for the ’25 plate and ongoing incentives should provide a boost to new car registrations in March but wider economic pressures could temper expectations.

“There is hope that the Government’s recent consultation on the Zero Emission Vehicle Mandate will deliver clarity for the industry. However, successfully navigating the next phase of the mandate and beyond will require a coordinated approach – manufacturers, charging point operators, finance providers, and government bodies must be enabled to work together in addressing the remaining barriers to EV adoption. This will ensure a smooth transition to a cleaner, more sustainable future for the UK automotive sector.”

Philipp Sayler von Amende, chief commercial officer – get your car, at Carwow

“February’s new car registrations provide another snapshot of the UK’s growing transition to electric vehicles, but it doesn’t reflect the true picture. EV sales continue to be dominated by fleets and consumer uptake remains worryingly low, despite growing volumes of enquiries. In February, EV enquiries on Carwow were up 87% compared to February 2024, indicating that an increasing number of consumers are considering making the switch. However, if this increased interest is to be converted into actual sales, the Government must step in to provide motorists with more incentives to buy.

“Car manufacturers are also in need of clarity. The recent decision by BMW to pause a £600m electric upgrade to ‘Plant Oxford’ highlights the general sense of unease surrounding the Government’s approach to electrification. A clear, consistent policy framework – whether that’s working to 2030 or 2035 – will help car makers commit to long-term investment in UK manufacturing.”

Vicky Edmonds, chief executive of EVA England

“We’re seeing a really strong performance from the EV market this year that is bucking perceptions and the trend of falling petrol and diesel sales.

Vicky Edmonds, chief executive of EVA England

“Yesterday saw two significant milestones reached: across new car sales, one in four drivers are now choosing EV, and we have over 75,000 public charge points across the UK. This shows that consumers are responding well to competitive EV prices and a charging network that is constantly improving.

“The priority now is for every driver to have the opportunity to consider an EV next. This means ensuring EVs are truly affordable for lower-income households, and a charging network that is fully accessible and affordable for all drivers.”

Susan Wells, director of EV & solar at Hive

“If the UK is to remain on the road to zero emissions, then the speed at which we transition away from petrol and diesel vehicles must accelerate. Affordability remains one of the biggest barriers to EV uptake and policymakers must ensure they are taking every step to encourage more drivers to make the switch. This includes additional funding for public charge points and revising the application of the vehicle excise duty for EVs from next month – which will go a long way to making EVs more affordable and accessible.

“For manufacturers, addressing the Climate Change Committee’s recent recommendation on improving EV battery range by 2030 will also play a crucial role in reducing range anxiety and encourage more drivers looking to make the switch.”