Electric dreams as new car market enjoys sales boost

The UK’s new car market grew by 11.7 per cent in July compared with the same month last year.

New figures show 156,571 new cars were registered last month.

The Society of Motor Manufacturers and Traders says the number marks the best July performance since 2019, adding the uplift represents an eighth consecutive month of year-on-year growth.

The increase was driven by a strong uptake of electrified vehicles.

Registrations of purely battery electric new cars were up 44.5 per cent compared with July 2025, which saw demand subdued ahead of incoming grants.

This was attributed to a wide choice of models, Government purchase incentives and heavy discounting by manufacturers.

Mike Hawes, Society of Motor Manufacturers and Traders’ chief executive, said: “July’s record electric vehicle performance is a great achievement, reflecting industry’s huge investment in zero emission mobility.

“But that progress cannot be sustained if manufacturers continue haemorrhaging billions in discounts, distorting demand to avoid even steeper penalties.

“The sector’s commitment to decarbonisation is not in doubt, but its ability to remain viable – and attract investment for an electric vehicle future – is under intense pressure.

“We need urgent reform of regulation, or else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.”

The headline target for the minimum proportion of new cars sold by each manufacturer this year that must be zero emission – which generally means fully electric – is 33 per cent under the Government’s zero emission vehicle mandate.

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