The UK new car market achieved a significant milestone in 2025, with total registrations topping the two-million mark for the first time since the pandemic.
According to the Society of Motor Manufacturers and Traders (SMMT), new car sales reached 2,020,520 units, supported by a stronger than expected year-end performance, with December volumes rising 3.9% to 146,249 vehicles.
While this headline figure reflects improved consumer and fleet confidence amid economic headwinds, the data shows that the market is in transition. Battery electric vehicles (BEVs) accounted for 473,348 registrations, representing 23.9% of total new car sales in 2025.
Despite showing strong growth in absolute terms, the BEV share remained below both government targets and industry expectations for the year. This may be due to recent updates announced in the Autumn Budget, including the new EV tax, which could have dampened the appeal of EVs.
Looking ahead to 2026, industry forecasts suggest further momentum for electric car sales. New projections estimate that electric car sales will increase to 580,000 units, equivalent to 29% of new car registrations.
This is a 5.6% uplift compared with BEV sales in 2025 and reflects continued market drivers such as improved choice and availability, better battery performance and lower prices. Despite this anticipated growth, the projected share still falls short of the 33% target outlined under the UK’s Zero Emission Vehicle (ZEV) Mandate.
The industry wants buyer incentives and improved infrastructure development to continue the trend away from ICE cars. Motor Assist is playing its part by offering full incident management services for electric car drivers, including EV-for-EV replacements and a network of approved repairers, 99% of which are qualified to work on EVs.
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