The UK’s transition to electric mobility has reached a major inflection point. According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), new registrations of battery-electric vehicles, BEVs, climbed 7.4% year-on-year in June, hitting 27,495 units—representing 19% of the new car market. In year-to-date terms, over 163,000 new BEVs have already been registered, marking a 10.7% increase on the same period in 2023.
This growth reflects both rising consumer confidence and greater product availability. Manufacturers are now offering more BEVs than ever before, spanning everything from compact hatchbacks to premium SUVs and executive saloons. Tesla’s Model Y, Hyundai’s IONIQ 5, and the MG4 continue to be standouts in terms of demand and affordability.
The industry’s ability to maintain momentum, however, is increasingly tied to public infrastructure. Mike Hawes, SMMT Chief Executive, warned, “We need investment in charging infrastructure to keep pace with uptake. The UK’s transition depends on making EV ownership viable for all.”
Although there has been progress in installing charging points, distribution remains uneven. Urban areas, particularly London, enjoy strong coverage, while rural regions lag behind. The government’s Local EV Infrastructure (LEVI) fund, worth £381 million, is designed to correct this imbalance. Yet local authorities continue to cite slow approval processes and planning red tape as key barriers.
Fleets Lead the Way in Electrification
The UK’s corporate fleet sector remains the principal force behind BEV uptake. In the first half of 2025, fleet registrations accounted for nearly 75% of all new BEVs, driven by compelling benefit-in-kind (BIK) tax incentives and clear net zero strategies across the private and public sectors. Leasing providers, logistics operators, and utility companies are increasingly transitioning their vehicles, setting an example for consumers.
Amazon UK, for instance, now operates more than 1,000 electric vans across its last-mile delivery network, while British Gas recently committed to a fully electric fleet by 2030. These high-volume purchases are not only accelerating market maturity but also feeding a second-hand EV market, which will be essential for mass adoption.
Second-Hand EV Market Showing Vital Signs of Growth
The UK’s used electric vehicle market is evolving rapidly, supported by the growing influx of de-fleeted company cars and ex-lease models. According to Auto Trader, consumer interest in second-hand BEVs has increased 45% since the start of the year, with the average price of a used EV now sitting at just under £18,000. This increase in affordability is unlocking access to electrification for a much broader demographic.
However, concerns remain around battery health and residual value stability. Several manufacturers, including Nissan and BMW, are addressing this by offering certified used EV programmes with extended warranties and battery performance guarantees.
Plug-in Hybrid Electric Vehicles (PHEVs) and Market Diversification
While BEVs dominate headlines, plug-in hybrid electric vehicles (PHEVs) are also witnessing renewed interest, particularly among drivers with limited access to home charging. PHEV registrations were up 30% in June, driven by improved electric-only ranges and a new wave of models from Volkswagen, Volvo, and Ford.
This hybrid approach offers a transitional path for consumers who remain cautious about full electrification. However, environmental advocates stress that reliance on PHEVs should be short-lived if the UK hopes to meet its 2035 target for zero-emission vehicle sales.
Supply Chain Investment and UK Manufacturing Outlook
OEMs are doubling down on domestic EV production. Stellantis, Nissan, and BMW have each pledged significant investment into UK factories, with battery production ramping up at gigafactories in Sunderland and Northumberland. These developments signal confidence in the UK’s long-term electrification roadmap, despite Brexit-related trade frictions and energy cost volatility.
According to a recent BEIS report, EV manufacturing now supports over 20,000 jobs across the UK and is expected to exceed 40,000 by 2027. This industrial shift not only underpins environmental goals but also anchors critical employment and skills in the UK economy.
Policy Consistency Remains Essential
While the UK’s EV momentum is clear, policy inconsistency continues to raise concerns. The government’s decision to delay the ban on new petrol and diesel vehicle sales from 2030 to 2035 was met with disappointment by many in the industry. Critics argue this risks undermining investment certainty and public trust.
Nonetheless, the Zero Emission Vehicle (ZEV) mandate, which requires 22% of all new car sales in 2024 to be electric, remains in force. Manufacturers not meeting the quota face steep penalties or must trade compliance credits. This regulatory pressure is ensuring that EVs are not just available but prioritised in dealer networks.
In a further effort to stimulate demand, the UK Government recently announced the reintroduction of purchase grants for electric vehicles, offering up to £3,750 off the price of a new EV. This incentive, part of a wider package to drive decarbonisation and support British carmakers, is expected to provide a significant boost to consumer confidence—especially among private buyers, who have so far lagged behind fleets in adoption.
The reintroduction of EV grants marks a strategic pivot towards making zero-emission transport more financially accessible and could play a crucial role in achieving the 2025 and 2030 ZEV targets. By lowering upfront costs, the policy aligns with findings from the Office for Zero Emission Vehicles (OZEV), which has long cited affordability as a primary barrier to adoption among low- and middle-income households.
Consumer attitudes toward EVs have shifted significantly over the past two years. A 2025 YouGov survey revealed that 58% of UK drivers now view EVs as a practical choice for daily driving, up from just 34% in 2022. The increasing availability of 200+ mile range models, alongside expanding rapid-charging networks, is eroding so-called ‘range anxiety’.
That said, education remains critical. Misconceptions around battery lifespan, charging costs, and vehicle performance persist. Industry stakeholders, including Energy UK and the RAC Foundation, continue to push for public awareness campaigns to demystify electric ownership and clarify total cost of ownership benefits.
The UK’s electric vehicle market is no longer a niche. With nearly one in five new cars now fully electric, the transition to zero-emission mobility is well underway. Continued fleet leadership, maturing infrastructure, and a vibrant used market are collectively accelerating adoption. However, sustained investment, coherent regulation, and public engagement remain crucial to maintaining progress and ensuring the UK remains on track to meet its net zero transport ambitions.
