1 in 5 new cars is battery electric, SMMT finds

In July 2025, the new cars market declined by -5.0 per cent to 140,154 vehicles, according to new data from the Society of Motor Manufacturers and Traders (SMMT). This makes July 2025 the weakest performance for the month since 2022, and follows two months of growth.

Of these new car registrations, 66,271 were petrol (down -14.7 per cent), 8,018 were diesel (down -7.9 per cent), and 18,551 were hybrid electric vehicles (HEV), which were down -10 per cent. Battery electric vehicles (BEV) and plug-in hybrid electric (PHEV) are the only categories that saw an increase in units, at 29,825 (up 9.1 per cent) and 17,489 (up 33 per cent) respectively.

July was the second weakest month of BEV growth this year, and the 9.1 percentage change pales in comparison with the 34.6 per cent increase recorded for the first half of 2025.

This makes the total market share of BEVs at 21.3 per cent, with PHEVs occupying 12.5 per cent of the market share and HEVs 13.2 per cent. This means that 47 per cent of the new car market is occupied by some form of electric vehicle. This is an increase from last year, where 41.4 per cent of the market share was held by electric vehicles.

The new Electric Car Grant provides a welcome and much needed fiscal incentive for BEV uptake, as the market share still remains short of the 28 per cent required by the ZEV Mandate.

Mike Hawes, SMMT chief executive, said: “July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty. Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.”