Battery electric vehicle registrations have surged by 14.9% in August 2025, reaching their highest market share of the year at 26.5%, according to the Society of Motor Manufacturers and Traders (SMMT). This spike comes despite an overall 2% drop in new car sales, highlighting a growing shift in consumer preference toward cleaner transport.
The rise is driven by government incentives, expanded model availability, and strong fleet demand. Plug-in hybrids also saw a sharp increase, while petrol, diesel, and hybrid sales declined. As the UK pushes toward its Zero Emission Vehicle mandate, electric vehicle adoption is clearly gaining momentum.
Electric Vehicles Surge Ahead Despite Market Dip
In a month where overall new car sales dipped, battery electric vehicles (BEVs) have bucked the trend — and in a big way. According to the Society of Motor Manufacturers and Traders (SMMT), August 2025 saw BEV registrations climb by 14.9%, reaching a record market share of 26.5%, the highest so far this year.
While total new car registrations fell by 2.0% to 82,908 units, the electric vehicle segment continues to defy gravity. This surge is being driven by a combination of government incentives, aggressive manufacturer discounting, and a growing appetite for cleaner transport options.
Overall Sales Slide, But EVs Shine
August is traditionally a quiet month for car sales, accounting for less than 5% of annual registrations ahead of the September number plate change. Fleet sales dominated, making up 59.1% of all new vehicles, despite a 4.6% drop in volume. Private buyer activity remained flat, with just a 0.7% increase, while business registrations rose by 41.6% — though that equated to fewer than 500 additional units.
In contrast, electric vehicle uptake surged. Plug-in hybrids (PHEVs) saw a massive 69.4% increase, grabbing 11.8% of the market, while traditional hybrids (HEVs) fell by 13.9%. Petrol and diesel vehicles also saw declines, with petrol dropping to a 45.1% share and diesel shrinking to just 5.1%.
What’s Driving The Electric Vehicle Boom
Several factors are fuelling the rise in electric vehicle registrations, says AutoCar:
- Government Incentives: The reintroduction of the Electric Car Grant has played a major role. With up to £3,750 off eligible models, buyers are finally seeing meaningful support at the point of sale.
- Fleet Preferences: Fleets continue to favour EVs and PHEVs due to lower Benefit-in-Kind tax rates and reduced running costs. Their dominance in August helped push EV market share higher than usual.
- Model Availability: There’s now a vast choice of electric vehicles across all segments — from compact city cars to luxury SUVs — making it easier for buyers to find something that suits their needs.
Mike Hawes, Chief Executive of the SMMT, 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. There is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation”.
Year-To-Date Snapshot
While So far in 2025, the UK new car market is up 2.1% compared to last year, reaching a five-year peak of 1.265 million units. However, it still sits 16.7% below pre-pandemic levels. Electric vehicles now account for 21.9% of all new registrations year-to-date — a solid increase from 17.2% this time last year, but still short of the government’s 28% Zero Emission Vehicle (ZEV) mandate target, says Electric Cars Report.
Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, noted: “New incentives from the Government combined with increased availability and considerable discounting is driving sales, but the UK is still falling short of the government’s Zero Emission Vehicle mandate”.
Final Thoughts
August 2025 may have been a slow month for overall car sales, but it was a landmark moment for electric vehicles. With BEV registrations hitting a record high and incentives finally making a dent, the shift toward cleaner motoring is gaining serious momentum.
As the September plate change approaches — typically one of the busiest months of the year — all eyes will be on whether this electric vehicle surge can be sustained. With more models being added to the Electric Car Grant and infrastructure slowly improving, the road ahead looks promising for EV adoption.
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