The UK car market had a solid start to summer, with new car registrations in June hitting levels we haven’t seen since 2019. According to the latest numbers from the Society of Motor Manufacturers and Traders (SMMT), registrations were up 6.7% last month. That’s two months in a row of growth, with over 191,000 new cars hitting the road.
Electric cars made up a big chunk of that, too - one in four new cars registered was fully electric, and demand for zero-emission models jumped by more than 39%.
It sounds like good news if you’re into EVs, but there’s more to the story. While fleet (company) purchases are driving the numbers up, private buyer interest isn’t keeping pace. People are still unsure, and that’s dragging overall progress.
There’s also a gap between where EV sales should be and where they actually are. To meet the government’s zero-emission targets, EVs need to make up a bigger slice of the market than they currently do. Right now, they’re tracking nearly 6.5% behind where they need to be.
So far in 2025, battery electric vehicle sales have reached over 224,000, up almost 35% from last year. But they still only make up around 21.6% of the market, below the government’s target of 28% for this year.
Mike Hawes, the boss at SMMT, said the growth is encouraging, but it’s being powered by big discounts and massive support from manufacturers. In other words, it’s not all organic demand.
Hawes stated, "Manufacturers are using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels.
"As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat."
Outside of EVs, plug-in hybrid sales are also rising (up nearly 29%), while petrol sales dropped slightly and diesel stayed flat.
Brand-wise, some carmakers are having a great start to 2025, while others are struggling to keep up.
The biggest shift? Chinese brands are really starting to shake up the UK market. BYD’s sales are up over 570% year-on-year. New names like Omoda and Jaecoo have gone from zero to a proper market share almost overnight, now selling as many cars as brands like Audi. They’re offering well-equipped EVs and hybrids at affordable prices, and it’s clearly working.
Other Chinese brands, like Leapmotor and Skywell, are growing more slowly, but momentum is building, especially with Geely (who own LEVC, Lotus, Polestar, and Volvo) planning a solo launch in the UK later this year.
Not everyone’s having a good time, though. Brands like Citroën, Audi, and SEAT are all seeing double-digit drops. Nissan, Fiat, and Honda are also struggling to hold onto sales.
Some are bouncing back. Tesla had a stronger June after a slow spring. There’s been some talk about Elon Musk’s politics being a factor, but any boost likely started before that made headlines.
Ford’s also inching forward. After a rough couple of years, the brand is showing signs of recovery and now has four electric models on sale, compared to just one this time last year.
Right now, there’s a clear split in the market. Some brands are thriving while others are being left behind. Among the winners are Alfa Romeo (up 50%), Jeep (up 76%), and Polestar, which has seen a massive 204% jump so far this year.
