UK new car market slips in August, EVs hit record share for 2025

The UK new car market saw a slight decline in August, with registrations falling -2.0% to 82,908 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Despite the slowdown, battery electric vehicles (BEVs) surged to a record market share of 26.5% – the highest so far in 2025 – as discounts, broader model choice, and the newly announced Electric Car Grant fuelled demand.

August is traditionally the quietest month of the year for new car sales, typically accounting for less than 5% of annual registrations ahead of September’s critical number plate change. Fleet purchases continued to dominate, making up 59.1% of all new vehicles despite a -4.6% decline in volume. Private buyer uptake grew 0.7%, while the business sector recorded a sharp 41.6% increase, though this equated to fewer than 500 additional units.

The transition to zero-emission vehicles accelerated, with BEV registrations up 14.9% year on year. Plug-in hybrid vehicles (PHEVs) saw even stronger growth, jumping 69.4% to achieve an 11.8% market share, while hybrid electric vehicles (HEVs) fell -13.9%, accounting for 11.4% of the market.

For the year to date, 1.265 million new cars have been registered – up 2.1% compared to 2024 and reaching a five-year peak. However, the market remains -16.7% below pre-pandemic levels. BEVs currently hold a 21.9% year-to-date share, still short of the government’s 28% zero-emission vehicle mandate for 2025.

With September – historically the second-biggest month of the year – now underway, the newly introduced Electric Car Grant is expected to play a key role in boosting EV uptake. Around a quarter of BEV models now qualify for the incentive, which could help drive demand as more vehicles are added to the scheme weekly.

Mike Hawes, SMMT Chief Executive, said: “August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive.

“September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.

“There is now a vast choice of electric models across all segments and, for the first time in three years, many consumers can benefit from a grant to help them switch to electric. With more models being added to the Government’s Electric Car Grant each week, there is every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”