Demand for EVs drives new car market to eighth consecutive month of growth

The UK’s new car market grew by 11.7% in July compared with the same month last year, new figures show.

Some 156,571 new cars were registered last month, the Society of Motor Manufacturers and Traders (SMMT) said.

This was the best July performance since 2019.

The SMMT said the uplift marks the eighth consecutive month of year-on-year growth.

July’s increase in registrations was driven by the strong uptake of electrified vehicles.

Registrations of pure battery electric new cars were up 44.5% compared with July 2025, which saw demand subdued ahead of incoming grants.

This was attributed to a wide choice of models, Government purchase incentives and heavy discounting by manufacturers.

SMMT chief executive Mike Hawes said: “July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility.

“But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties.

“The sector’s commitment to decarbonisation is not in doubt but its ability to remain viable – and attract investment for an EV future – is under intense pressure.

“We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.”

The headline target for the minimum proportion of new cars sold by each manufacturer this year that must be zero emission – which generally means fully electric – is 33%, under the Government’s zero emission vehicle (Zev) mandate.

Ian Plummer, chief customer officer at online vehicle marketplace Autotrader, said: “The new car market looks well on course for its best year since 2019 as strong competition between manufacturers helps improve affordability and pull consumers back into the market.

“The Gulf conflict has focused the minds of car buyers on lower cost motoring options, so demand remains particularly strong for electrified vehicles.

“For the first time, one in every two new car inquiries on Autotrader in July went to a plug-in car, showing that they are now a mainstream choice for UK car buyers.”

A Department for Transport spokesperson said: “EV sales have surged almost 45% since July last year, backed by our Electric Car Grant which has helped over 150,000 drivers buy a new EV, boosting sales whilst putting money back in people’s pockets.

“We’ve made it easier and cheaper than ever before to go electric and with savings of up to £1,400 on EV running costs, there’s never been a better time to make the switch.”