Sales of new battery electric cars (BEVs) rose 44.5% in July, compared to July 2025, according to the Society of Motor Manufacturers and Traders (SMMT).

This is compared with a sub-par July 2025 when some buyers delayed switching until confirmation of full model eligibility for the Electric Car Grant (ECG).

The latest industry outlook from the SMMT now expects BEVs to reach 27.4% of a 2.18 million-strong market by year end – up from a 26.8% share in April’s outlook but still far short of the 33% mandate target. Longer term, BEV share is expected to rise to 32.1% in 2027 against a target of 38%. This is despite an ever-expanding number of brands and models, manufacturer subsidies, government incentives and an ongoing backdrop of high fuel prices.

Mike Hawes, SMMT Chief Executive: "July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility. But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties. The sector’s commitment to decarbonisation is not in doubt but its ability to remain viable – and attract investment for an EV future – is under intense pressure.

"A sustainable transition will not happen merely by compelling supply when underlying demand is not keeping pace despite year-on-year growth. We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry."

Overall, the new car market grew 11.7% in July with 156,571 units registered.

Demand grew across all sectors, with private buyer uptake rising 12.6%, fleet deliveries up 9.5% – representing six in 10 (59.9%) registrations – and the lower-volume business segment up 61.3%.

Plug-in hybrids rose 33.6% to take a 14.9% share of the market, and hybrids up 11.6% to account for 13.2%.