Electric vehicles (EVs) now constitute more than a quarter of all new car sales in the United Kingdom, a milestone driven by escalating fuel costs and government grants. In July, 156,500 new cars were purchased, representing an almost 12 percent increase year-on-year and the strongest sales performance since before the COVID-19 pandemic.
Battery-powered cars saw a substantial surge, with 43,106 fully electric vehicles registered in July, marking a 44.5 percent increase compared to the previous year. This means EVs accounted for 27.5 percent of all new car deliveries. For context, this equates to approximately six new EVs entering British roads for every new diesel car sold.
The increase in EV demand is attributed to several factors, including elevated fuel prices influenced by geopolitical events, the introduction of the Government's Electric Car Grant (ECG), ongoing manufacturer incentives, and a widening array of more affordable electric models.
Despite this record performance, the automotive industry notes that EV sales are still falling short of the government's 2026 target of a 33 percent market share. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), called the figures a "great achievement" that reflects the industry's significant investment in zero-emission transport. However, he cautioned that manufacturers cannot indefinitely sustain demand through costly incentives and urged the government to "urgently reform regulations" to enhance Britain's manufacturing competitiveness and safeguard industry jobs.
The uptake of other electrified models also saw acceleration. Plug-in hybrid registrations grew by 33.6 percent in July, while conventional hybrid sales increased by 11.6 percent. This trend is partly fueled by a broader selection of electrified vehicles entering the market, including offerings from Chinese brands that provide advanced technology and extended driving ranges.
Hybrids are increasingly appealing to motorists seeking lower running costs without fully committing to an electric vehicle. Some hybrid models now offer electric-only ranges exceeding 70 miles, making them attractive amidst volatile fuel prices.
In contrast, sales of diesel cars declined by nearly 18 percent in July, with fewer than 6,600 registrations, representing one in every 25 new car registrations. Petrol car demand also decreased by 5 percent, though petrol models still account for two in five new car registrations.
Ian Plummer, chief customer officer at Auto Trader, observed that the new car market is on track for its best year since 2019, with strong manufacturer competition improving affordability. He noted that conflict in the Gulf has heightened consumer focus on lower-cost motoring, bolstering demand for electrified vehicles. For the first time, half of all new car inquiries on Auto Trader in July were for plug-in vehicles, indicating their mainstream appeal.
The Ford Puma remained the UK's best-selling car in July, with over 3,500 registrations. However, production challenges have arisen due to energy crises affecting parts of Eastern Europe. Chinese brand Jaecoo has seen significant growth, with its Jaecoo 7 SUV ranking as the third best-selling new car and the Jaecoo 5 ranking seventh. Among fully electric models, the Renault 5 hatchback was the most popular EV in July, with nearly 1,800 registrations.