Electric vehicle (EV) sales in the UK are on the rise, reaching over 2 million new registrations in 2025—the highest in recent years. Almost 500,000 of these were electric cars, reflecting a growing interest amid challenges in the economy.
SMMT chief, Mike Hawes, highlighted that while this growth is promising, it still falls short of government targets. Currently, electric cars make up about 23.4% of new registrations, but the target is 28% under the Zero Emission Vehicles Mandate (ZEV Mandate). This gap has sparked concerns about the sustainability of the hefty discounts car manufacturers are offering to boost sales. Last year, discounts totaled more than £5 billion, averaging around £11,000 per electric vehicle.
Hawes emphasized the need for a review of the ZEV Mandate sooner than the planned 2027. He pointed out changing market conditions, like rising energy prices, that impact production and consumer confidence. While manufacturers are keen to sell more EVs, the costs associated with achieving sales targets are escalating.
Some industry experts, like Eurig Druce from Stellantis, argue that an earlier review would provide clarity for manufacturers and consumers. Meanwhile, others, like Colin Walker from the Energy and Climate Intelligence Unit, remain optimistic about the shift toward EVs, noting that this trend could benefit the second-hand market, making electric cars more accessible for everyday buyers.
Concerns about consumer confidence persist. Ginny Buckley from Electrifying.com pointed out that as the market aims to move from one in four to one in three new cars being EVs, buyers will need clear messaging and consistent policies to feel secure in their choices.
Recently, the government has taken steps to encourage EV adoption through funding initiatives, such as the £2 billion Electric Car Grant Scheme, which helps with the purchase of electric vehicles and improves charging infrastructure. However, plans for a “per mile” tax on electric vehicles have raised eyebrows, complicating the narrative around EV incentives.
As the UK strives to lead in green transport, maintaining clear and supportive policies will be essential to bridge the gap between consumer demand and ambitious climate targets. The transition is underway, but the path ahead looks challenging.
For more insights into EV trends and policies, check out the SMMT news release for the latest updates.
