Electric Vehicle Sales Surge as Fuel Prices Rise, New Figures Show

The market for new cars experienced an 11.4% growth in June, marking the seventh consecutive month of increased activity, according to figures from the Society of Motor Manufacturers and Traders (SMMT). A total of 213,166 new cars were sold in June, the highest figure for the month since 2019. This growth was largely driven by a surge in demand for electric and hybrid vehicles.

Pure electric vehicles (EVs) constituted three in ten new car registrations last month, a significant increase from previous periods. For the first six months of the year, EVs represented three in ten new cars sold, up from a quarter at the same point in 2025. Industry experts attribute this rise to escalating fuel prices, exacerbated by recent global conflicts, and an expanding range of available electric models.

The influx of new Tesla models significantly contributed to the rise in EV registrations. The company delivered 12,200 orders in June, making up one-fifth of all electric vehicles entering the road that month. Specifically, the Tesla Model Y and Model 3 were the two best-selling vehicles in June. Tesla reported that its sales for the second quarter of 2026 were 36% higher than the previous year, indicating strong and growing demand.

"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," said SMMT chief executive Mike Hawes. However, he also noted that "even these record levels are still not enough to meet mandated targets."

Manufacturers are working to meet the government's Zero-Emission Vehicle (ZEV) mandate, which requires a minimum proportion of new cars sold to be zero-emission, generally meaning fully electric. The target for this year is 33%, with annual increases thereafter. Carmakers can utilize flexibilities within the mandate, such as earning ZEV credits for reducing CO2 emissions across their model ranges and increasing sales of hybrid cars.

Renault UK reported that 37% of its deliveries in 2026 were pure electric cars. Adam Wood, UK managing director at Renault, stated that 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." He added that buyers can now switch to EVs with estimated annual fuel cost savings of £650.

Other electrified vehicle segments also saw growth. Plug-in hybrid (PHEV) sales increased by 25% to 26,000 deliveries last month, while conventional 'self-charging' hybrids (HEVs) also recorded a 25% rise, now representing one in seven new car sales for 2026 so far. This growth in electrified vehicles offset a 4% decline in petrol car sales and a significant 25% drop in diesel demand. Petrol cars accounted for 43% of the total market this year, with diesel registrations falling to fewer than one in twenty new cars.

Despite the positive trends, the SMMT has called for reforms to the ZEV mandate, arguing that the market is not moving fast enough to meet targets. "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," Hawes urged.