Battery electric car demand rose 39.1% to 47,354 units, with one in four buyers going electric – but this figure is still below Government targets.
Some 191,316 new cars were registered in June, marking the best June figures since 2019. However, the market remains 17.9% behind pre-Covid levels.
According to the SMMT, demand was driven mostly by fleet activity, with uptake climbing 8.5% to 114,841 units. Private retail demand grew 5.9% to 71,616 units but still accounted for just less than four in 10 (37.4%) new cars registered. Business registrations fell 15.8% to 4,859 units.
New petrol registrations declined 4.2% and diesel volumes were flat (+0.2%), meaning their combined share of the market is now just over half (51.6%), with total electrified vehicle registrations (92,571) achieving a 48.5% market share.
Registrations of vehicles with plugs rose strongly, as battery electric vehicles (BEVs) jumped 39.1% to 47,354 units, equivalent to a quarter (24.8%) of the market, and plug-in hybrid EVs (PHEVs) grew 28.8% to 21,382 units.
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The market for new hybrid EVs (HEVs), meanwhile, fell by 8.5% to 23,835 registrations.
The SMMT said a lack of governmental purchase and charging incentives, combined with fiscal disincentives such as the newly applied VED Expensive Car Supplement (ECS), are effectively acting as a brake on BEV demand.
Mike Hawes, SMMT’s chief executive, said: “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs. That EV growth, however, is still being driven by substantial industry support with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels.
“As we have seen in other countries, Government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”
Jon Lawes, managing director at Novuna Vehicle Solutions, said: “The rise in EV registrations is encouraging, but we’re still short of the ZEV mandate’s 28% target – a gap that matters for fleets already under pressure to decarbonise. Recent changes to the mandate risk blunting the industry’s momentum just as we need it most.
“Encouragingly, the commercial sector is stepping up, especially in LCVs, where greater model choice and tighter emissions rules are driving uptake. But long-term progress will depend on consistent policy and faster infrastructure roll-out to give fleet operators the confidence to scale their transition plans.”
