EVs grab quarter of the new car market in February

Electric cars accounted for one in four of all new car registrations last month, as sales grew by nearly 42%.

The most recent figures from the Society of Motor Manufacturers and Traders (SMMT) show EV registrations continued to buck the overall market trend and rose by 41.7% in February 2025 even as overall registrations dropped for the fifth consecutive month, by 1%. In doing so, they secured a 25.3% market share compared with 17.7% this time in 2024.

The positive trajectory of EV registrations, during what is traditionally the market’s quietest month, is set to continue into March as buyers are expected to capitalise on the new ’25 plate, and grab their final chance to avoid the Expensive Car Supplement (ECS), which will come into effect on April 1st. When the ECS kicks in, it will add £2,125 to the cost of an EV with a list price above £40,000 over a period of six years.

Manufacturers have already underwritten the transition to EV to the tune of more than £4.5 billion in discounts over the last year alone, with brands such as Volkswagen and Renault offering signficant price cuts on new EV registrations in the UK. This is in addition to the billions invested in developing and bringing electric vehicles to market.

The SMMT said that this level of loss was unsustainable and called for changes to the ZEV mandate to include measures which afford greater market flexibilities, incentivise private purchases, and both encourage and facilitate a faster rollout of charging infrastructure.

The ZEV mandate requires that carmakers must sell a percentage of ZEVs each year. In 2024, that figure was 22% and is set to increase to 28% in 2025. By 2030, 80% of new cars and 70% of new vans sold in the UK must be zero emission. The threshold will increase to 100% by 2035.

“Although February’s figures show a subdued overall market, the good news is that electric car uptake is increasing, albeit at huge cost to manufacturers in terms of market support,” said SMMT chief executive, Mike Hawes. “It is always dangerous, however, to draw conclusions from a single month, especially one as small and volatile as February.

“With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month – but, long term, EV consumers need carrots, not ever more sticks.”

His words were echoed by Vicky Read, ChargeUK CEO, who added: “February brings another month of growth for EV sales in the UK as the strong and increasing demand for these vehicles continues.

“ChargeUK members are already investing billions to ensure charging is installed ahead of demand for the drivers that made the switch in February, and for the millions more who will make the switch in the coming years.

“But we need a supportive policy environment to ensure that we can keep rolling out the affordable charging that car manufacturers need to sell EVs. Above all else this means a strong ZEV mandate, with any weakening of sales quotas leading to a vicious circle of reduced infrastructure investment, fewer, more expensive chargers and lower demand for EVs.”