UK new car registrations rise 11.7% as EV demand surges in July

The UK new car market recorded its eighth consecutive month of growth in July, with registrations rising 11.7% year-on-year as battery electric vehicle (BEV) demand surged by more than 44%, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 156,571 new cars were registered during the month, up from 140,154 in July 2025 and representing the strongest July performance since 2019, when registrations reached 157,198 units. The SMMT said the market was continuing its longer-term recovery towards pre-pandemic levels, although the comparison benefited from a relatively weak July last year.

Growth was recorded across all customer segments. Private registrations increased 12.6% to 58,137 units, while fleet demand rose 9.5% to 93,734 and continued to dominate the market with a 59.9% share.

The smaller business segment recorded the strongest percentage increase, rising 61.3% from 2,913 to 4,700 registrations.

The latest performance takes total new car registrations for the first seven months of 2026 to 1,294,499, an increase of 9.5% compared with 1,182,373 over the same period last year.

Private registrations have risen 12.1% year-to-date to 508,337, while fleet volumes are up 7.5% to 755,576. Business registrations have increased 19.1% to 30,586.

BEV registrations jump 44.5%

Electrified vehicles were a major driver of July’s growth, with BEV registrations increasing 44.5% year-on-year to a record 43,106 units for the month.

BEVs accounted for 27.5% of all new car registrations, compared with 21.3% in July 2025. The SMMT attributed the performance to an expanding choice of models, significant manufacturer discounting and government incentives, while the comparison was also against a weaker July last year when some buyers delayed switching while awaiting confirmation of eligibility for the Electric Car Grant.

Plug-in hybrid electric vehicle registrations also increased strongly, rising 33.6% to 23,359 and taking a 14.9% market share, compared with 12.5% a year earlier.

Hybrid electric vehicle demand increased 11.6% to 20,711 units, maintaining a 13.2% share of the market.

In contrast, registrations of conventionally powered vehicles continued to decline. Petrol registrations fell 5.2% to 62,799, reducing their market share from 47.3% to 40.1%, while diesel registrations dropped 17.7% to 6,596 and accounted for just 4.2% of the market.

Across the year to date, BEV registrations have risen 28.7% to 327,683, giving electric cars a 25.3% share of the new car market. Plug-in hybrid registrations are up 37.7% at 171,491, while hybrids have increased 10.3% to 182,387.

EV market still falling short of mandate

Despite July’s significant increase in electric car demand, the SMMT warned that the market remains some distance from the levels required under the UK’s Zero Emission Vehicle mandate.

The organisation’s latest outlook forecasts 2.18 million new car registrations across 2026, with BEVs expected to achieve a 27.4% market share. That represents an improvement on the 26.8% forecast in April but remains substantially below the 33% mandate target for the year.

For 2027, the SMMT expects BEVs to reach a 32.1% share against a mandate target of 38%.

The industry body warned that the gap persists despite an expanding range of electric models, manufacturer subsidies, government incentives and high fuel prices. It said significant discounting and other financial support used to stimulate demand were placing pressure on manufacturers’ profitability and potentially weakening residual values.

“July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility,” he said. “But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties. The sector’s commitment to decarbonisation is not in doubt but its ability to remain viable – and attract investment for an EV future – is under intense pressure.

He added that: “A sustainable transition will not happen merely by compelling supply when underlying demand is not keeping pace despite year-on-year growth. We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.”