Auto Finance Sponsored by Auto Finance News UK new car market enjoys strongest June since 2019 as EVs reach record share Published: 6th July 2026 Share The UK new car market recorded its strongest June performance since before the pandemic, with registrations rising 11.4% year-on-year, although the industry has warned that electric vehicle uptake remains well below the levels needed to meet government targets. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), 213,166 new cars were registered in June, marking the best June performance since 2019 and continuing the market’s recovery. Source: SMMT Growth was recorded across all customer segments. Private registrations increased by 12.5%, fleet deliveries rose 10.5%, and registrations to businesses climbed 17.1%. Fleet buyers continued to dominate the market, accounting for almost six in every 10 new car registrations (59.5%). The market’s growth was driven entirely by electrified vehicles, with battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and hybrids (HEVs) all increasing their market share. Source: SMMT Battery electric vehicles delivered the strongest performance, accounting for 30.0% of all new registrations in June – the highest monthly share recorded so far this year. The SMMT said the result reflected both the traditional end-of-quarter increase in registrations and growing consumer interest following higher fuel prices linked to conflict in the Middle East. Plug-in hybrids captured a 12.5% market share, while hybrids accounted for 14.0%, meaning more than half of all new cars registered during the month featured an electrified powertrain. Despite the milestone, the industry cautioned that EV adoption remains behind the pace required to achieve the UK’s Zero Emission Vehicle (ZEV) Mandate targets. Battery electric vehicles have accounted for a record 25.0% of registrations during the first six months of 2026, but this remains significantly below the 33% market share target for the year. According to the SMMT, BEVs would need to exceed 40% of all new registrations for the remainder of 2026 to meet the annual requirement. The organisation also noted that despite manufacturers investing billions in new electric models, offering substantial discounts worth more than £12 billion and benefiting from government incentives, three out of every four new car buyers are still choosing an alternative powertrain. The latest findings from the SMMT’s UK Automotive Business Leaders Barometer underline the challenge facing the sector. Every respondent said the UK is currently behind the trajectory required to achieve the mandated 80% BEV market share by 2030, while almost three-quarters (73.8%) believe the market is significantly behind schedule. Mike Hawes, Chief Executive of the SMMT, 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.” The SMMT said the industry remains committed to the transition to zero-emission mobility but warned that the current cost of complying with the mandate is placing increasing pressure on manufacturers, potentially affecting future investment decisions and the UK’s competitiveness as both a vehicle market and manufacturing base. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsUK van market returns to growth as EV gap persists NewsZEV Mandate under fast-track review NewsZenobē raises $400m for zero-emission fleets in Australia and NZ Auto Finance