EV sales continue to grow as new car market shrinks
Electric cars bucked the overall new car market in August, growing by almost 15% to take more than a quarter of all new registrations.
The latest data from the Society of Motor Manufacturers and Traders (SMMT) shows that overall new car registrations dropped by 2% in August while EVs and plug-in hybrids forged ahead.
August is traditionally the quietest month for the new car market, ahead of the boom that comes with the number plate change in September.
The SMMT said that a broader model choice, news of the Government’s Electric Car Grant and continued manufacturer discounts, including in-house versions of the ECG, helped buoy EV demand even as interest in petrol and diesel stalled.
The latest figures show EV registrations rose 14.9% to give them a 26.5% market share – the highest in 2025 and fourth highest on record. However, plug-in hybrids enjoyed even greater growth – up 69% to almost 12% market share.
August’s figures are positive news for the EV market but show that sales of electric cars are still some way short of the target set out in the ZEV mandate. That requires 28% of all new car registrations to be zero emissions by the end of 2025 but year-to-date the figure remains at just 22%.
The SMMT said it expected EVs’ market share to continue to increase, with a quarter of all passenger cars eligible for the ECG and an ever-growing reliable public charging network.
Mike Hawes, SMMT chief executive, commented: “August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.
“There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. With more models being added to the Government’s Electric Car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”
