Strong demand for EVs boosts new car registrations
By Abigail Townsend
Date: Tuesday 06 Jan 2026
(Sharecast News) - New car registrations topped 2m in 2025, industry data showed on Tuesday, powered by growing demand for electric vehicles.
According to the Society for Motor Manufacturers and Traders, there were 2,020,520 new car registrations in the UK last year, up 3.5%. It is the first time since the pandemic that registrations have topped 2m.
The majority of registrations - 51.6% - were for cars with internal combustion engines. However, a total of 473,348 battery electric vehicles were registered during the year, more than the whole of 2021 and 2022 combined.
As a result, BEV market share now stands at 23.4%, which the SMMT said likely made the UK the second-biggest EV market in Europe by volume.
A wider range of models has helped fuel demand. Motor manufacturers currently offer more than 160 BEV models, up from 132 at the start of 2025.
However, BEV market share remains below the government's zero emission vehicle (ZEV) mandate, for 28%.
The government's long-term goal is for all new cars and vans sold in Great Britain to be zero emission by 2035.
SMMT chief executive Mike Hawes said total registrations surpassing 2m was a "reasonably solid result amid tough economic and geopolitical headwinds".
However, he warned: "Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high.
"Government has stepped in with a new electric car grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals."
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