Economy

Three in ten new cars are electric as rising fuel prices increase demand for plug-in vehicles

Three in ten new cars sold last month were pure electric as demand for zero-emission vehicles continues to rally, latest industry figures show.

Rising fuel prices triggered by the conflict in Iran over the last four months, as well as an expanding showroom of new models, have driven a 35 per cent uplift in electric car registrations compared to June 2025.

The boom in sales was heavily shouldered by a shipment of new Teslas, which saw 12,200 orders delivered to customers and accounted for a fifth of all EVs entering the road last month.

Increasing appetite for electric and hybrid vehicles drove an 11.4 per cent growth in the new car market in June, marking a seventh consecutive month of rising activity.

Some 213,166 new cars were sold last month, the Society of Motor Manufacturers and Traders (SMMT) confirmed on Monday. This was up from 191,316 in June last year and represents the highest total for that month since 2019.

And it is private sales that are lifting the market, accounting for 452,800 of the 1.13million new car deliveries in the first six months of the year – 50,000 more cars sold to individual buyers via showrooms than the first half of 2025.  

Higher fuel prices triggered by conflict in the Middle East continued to drive electric car sales last month, with EVs representing three in ten new motors entering the road in June

Increasing appetite for electric and hybrid vehicles drove a seventh consecutive month of increased new car sales - and the most seen in the month of June since 2019

Increasing appetite for electric and hybrid vehicles drove a seventh consecutive month of increased new car sales – and the most seen in the month of June since 2019

The rise in pure electric car sales last month means three in ten new cars sold in the first six months of the year are EVs, up from a quarter at the mid-year point of 2025.

The SMMT described the sales figures for EVs as ‘significant’.

However, the trade body noted 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 per cent, under the Government’s zero-emission vehicle (ZEV) mandate.

That said, carmakers benefit from flexibilities built into the mandate’s rules to allow them to hit the 33 per cent target this year – and rising thresholds annually thereafter.

This includes earning ZEV credits for lowering the CO2 emissions output of their model ranges and increasing sales of hybrid cars.

As such, all mainstream brands are expected to adhere to the sales targets this year. 

SMMT chief executive Mike Hawes said: ‘June’s performance is very strong, showing EV uptake is growing, with battery electric cars reaching their highest market share this year and more than half of buyers choosing electrified models.

‘But even these record levels are still not enough to meet mandated targets.

‘Manufacturers are investing billions developing and bringing the vehicles to market – and spending billions more to sell them – yet the market is still not moving fast enough.

‘Reforming the mandate now is essential not just to keep the transition on track but to protect the UK’s competitiveness, attract investment and safeguard jobs.’

Reanult UK says the oil price crisis 'added significant further impetus to the EV market' over the last four months

Reanult UK says the oil price crisis ‘added significant further impetus to the EV market’ over the last four months

Pure EVs (BEV) make up one in five new cars sold this year. However, the government has mandated that 33% of all registrations need to be 'zero emissions' in 2026 - effectively EVs

Pure EVs (BEV) make up one in five new cars sold this year. However, the government has mandated that 33% of all registrations need to be ‘zero emissions’ in 2026 – effectively EVs

Renault is one of the brands that has seen a sharp uplift in EV sales in 2026, with 37 per cent of its deliveries being pure electric cars.

Adam Wood, UK managing director at the French carmaker, said: ‘The recent oil price crisis has added significant further impetus to the EV market, underlining one of the key benefits of making the switch: affordability.

‘We are at a tipping point, where stylish, practical and capable EVs are available at appealing prices, and with fuel cost savings that we estimate to be £650 a year on average, buyers can now make the switch with their head and heart.’

Ginny Buckley, chief executive and founder of EV website Electrifying.com, said: ‘Buyers are making sensible, practical decisions – choosing electric because they’re cheaper to run, better to drive and protect them from volatile fuel prices.

‘That’s good news not just for consumers, but for dealers too. Electric cars are no longer the alternative, but are becoming the mainstream choice.’

The arrival of new Chinese brands specialising in long-range plug-in hybrids has also helped push registrations higher, with PHEV sales up 25 per cent to 26,000 deliveries last month.

Conventional ‘self-charging’ hybrids (HEVs) also recorded growth of 25 per cent and represent one in seven new car sales for 2026 so far.

The increase in electrified vehicle registrations offset a four per cent decline in petrol car sales and a 25 per cent collapse in diesel demand.

Just short of 500,000 petrol cars have been bought by Britons this year, accounting for 43 per cent of the total market. Diesel registrations for 2026 are down to just 52,500 and represent fewer than one in 20 new cars.

A massive shipment of new Teslas arriving in June shouldered the rise in EV registrations seen last month

A massive shipment of new Teslas arriving in June shouldered the rise in EV registrations seen last month

While the Model Y and Model 3 were June's two best sellers, they are far from the most popular new cars of 2026 so far

While the Model Y and Model 3 were June’s two best sellers, they are far from the most popular new cars of 2026 so far

The Tesla delivery effect 

The arrival of a shipment of new Tesla cars from overseas underpinned the jump in EV sales last month.

Some 6,765 Model Y SUVs and 5,408 Model 3 saloons were registered in June – more than any other vehicles during the 30-day period.

The Ford Puma – Britain’s favourite new car for the last three years and the top seller for 2026 so far – was third, with 5,284.

For Tesla, sales between April and the end of June were 36 per cent higher than the second quarter of 2025, which it says ‘reflects the continued and growing demand for Tesla vehicles in the UK’.

A spokesperson told us: ‘We continue to remain confident of our growth trajectory and our recent orders reflect this.

‘Moving into the second half of 2026, orders and reservations continue to outpace their respective months in both 2025 and 2024, with current expected delivery timings extending into Q4 as we are already selling through our expected Q3 vehicles.’

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