EV sales still below government target, despite growth in June
The latest SMMT new registrations data saw battery electric vehicle (BEV) registrations continue recent growth trends, with volumes up by 39.1% year-on-year in June, representing a 24.8% overall market share.
However, the BEV market is still falling below government’s 28% target set for 2025, with the latest outlook showing a 21.6% market share in the first half of 2025. Overall, the new car market returned to growth with a 6.7% increase to 191,316 units, the highest level since 2019.
Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, comments: “New electric vehicle (EV) registrations in June continued the upward trend of the previous month, with EV market share continuing to grow. This growth is significant ahead of the approaching 2030 ban on new petrol and diesel cars, with the latest uptick in EVs suggesting that consumers and manufacturers are adapting to policy on reducing carbon emissions.
“In addition, if growth in the EV markets continues, this will drive demand for charging infrastructure and renewable energy integration. This rising demand would make investment in these areas more viable, aligning with the government’s Infrastructure Strategy. The launch of the Infrastructure Pipeline Portal will be key to renewable energy integration and investment, providing businesses with more transparency on upcoming projects, helping investors to identify opportunities and therefore make investment decisions to support the transition to net zero. We’re also waiting on the publication of the Statement of Strategic Priorities for GB Energy and the Clean Flexibility Roadmap, which will provide further clarity on the government’s long-term vision for clean energy as a growth-driving industry.”
She added: “However, there remains questions over the role of taxes to incentivise businesses and consumers to make the shift to net zero. Ahead of the Autumn Budget, the industry will be watching closely to see how EV sales compare to hybrids. An increase in hybrids would suggest some hesitancy from consumers to make the leap, which may see the government bring in support in the form of targeted incentives, such as grants for EV buyers, tax relief for businesses and accelerated investment in charging infrastructure.”