Britain's new car market recorded its strongest June performance since 2019, driven by rising demand for electric vehicles and a broader range of affordable models, according to industry
figures released on Monday.
Data from the Society of Motor Manufacturers and Traders (SMMT) showed that 213,166 new cars were registered in June, marking an 11.4% increase compared with the same month last year. Battery electric vehicles (BEVs) captured a record 30% share of the market, matching figures published separately by New Automotive.
The continued growth in electric vehicle sales has been supported by higher fuel prices following the Iran conflict, expanded availability of lower-priced EV models, government incentives and manufacturer discounts. Despite the momentum, the pace of adoption remains below the level required to meet the UK government's long-term net-zero targets.
Automakers are under increasing pressure to meet Britain's annual electric vehicle sales requirements, but many warn that doing so has come at a significant cost. The industry says aggressive discounting and rising compliance expenses are squeezing profitability, while stricter EU trade rules set to take effect in 2027 are expected to create additional challenges.
"The unsustainable cost of compliance is making the UK an increasingly uncompetitive place to both sell and produce cars, putting future investment at risk as manufacturers look to markets with less restrictive regulations," the SMMT said.
Battery electric vehicles accounted for 25% of all new car registrations during the first half of the year, still short of the government's annual target of 33%. According to the SMMT, electric vehicles would need to represent more than 40% of all new registrations during the remainder of 2026 for the industry to achieve that goal.
Separate figures released by New Automotive on Friday indicated that overall new car sales increased by around 15% year-on-year. The difference from the SMMT's data reflects variations in data collection methods and calculation approaches used by the two organizations. Photo by Vauxford, Wikimedia commons.
