EV demand ticks up, but incentives needed to meet government mandates

The latest SMMT new registrations data saw registrations of new cars increase by 24% in the year to April at 149,247 units when compared to April 2025.

Battery electric vehicle (BEV) registrations continued recent growth trends, with volumes up 59.1% when compared to last year. This represents a 21.1% overall market share, which is still falling sharply below the government’s 33% Zero Emission Vehicle Mandate.

Commenting on the latest SMMT new registrations data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “Consumer appetite for electric vehicles (EVs) continues to grow amid elevated fuel prices and persistent concerns over fuel shortages and rations. This is a step in the right direction towards a longer-term transition to zero-emissions vehicles. However, these increases still sit way behind the government mandated targets, so more needs to be done to incentivise consumers and businesses to switch.

“With fleet registrations acting as the primary driver for the EV uptick, congestion charge exemptions, such as a reintroduction of the 100% cleaner vehicle discount in London, could increase the appeal of zero-emissions vehicles further.

“In addition, measures to remove disparities between public and private charging, with public charging remaining substantially more expensive, and investing in on-street parking capabilities for people without driveways could also go a long way to boost EV appetite. These were recommendations published by the Environment and Climate Change Committee in 2024, which we are yet to see come into effect.

“If cost of living pressures caused by the conflict in the Middle East prevail, we could see demand for new vehicles take a hit across the market. Incentivising measures, which help to reduce consumer costs, could accelerate change to support the UK’s long-term EV transition goals.”

authors:sheena-mcguinness