UK EV Sales Surge Amid Rising New Car Registrations in June 2025

In June 2025, the UK automotive industry experienced a notable resurgence in new car registrations, with electric vehicle (EV) sales contributing significantly to this growth. According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations increased by 6.7% year-on-year, marking the strongest performance for June since 2019. This rise was highlighted by the substantial growth in Battery Electric Vehicle (BEV) sales, which saw a remarkable 39.1% increase, reaching 47,354 units.

David Borland, the Automotive Leader at EY UK & Ireland, commented on these figures, emphasizing the volatility in the market but also the opportunities presented by the new Industrial Strategy aimed at securing the automotive sector's future through research and development funding. The strategy seeks to bolster the EV supply chain, which is crucial for UK automotive manufacturers as they navigate the evolving landscape of consumer preferences and regulatory demands.

Despite these positive indicators, challenges persist. The market share of BEVs currently stands at 21.6%, still below the 28% target set by the Zero Emissions Vehicle (ZEV) Mandate. New flexibilities in the ZEV legislation may alleviate some pressures, yet the automotive sector must address these challenges proactively. Notably, petrol vehicle registrations fell by 4.2% year-on-year, reflecting shifting consumer attitudes towards more sustainable options.

Maria Bengtsson, EY UK & Ireland Mobility Leader, added that while retail sales have shown signs of recovery, automakers need to innovate to attract consumers. The competition from new entrants, particularly from the Chinese automotive market, further complicates the landscape, as these manufacturers often offer more attractive pricing compared to UK and European counterparts. As fleet sales also showed an 8.5% increase year-on-year, the industry is urged to enhance charging infrastructure and leverage technologies like Vehicle to Grid (V2G) charging to promote consistent growth.

In conclusion, while the UK automotive industry is experiencing a revival, particularly in the EV sector, it must remain agile in addressing regulatory challenges, competition, and evolving consumer preferences to secure its position in a rapidly changing market.