EVs reached record market share for the year – 26.5% - but September sales will be even higher as new incentives take effect.

UK new car registrations declined by 2.0% in August to 82,908 units. August is normally the quietest month of the year – generally accounting for less than 5% of annual deliveries ahead of September’s number plate change.

Fleet uptake dominated the month, accounting for 59.1% of all new vehicles reaching the road despite a 4.6% reduction in volumes. Uptake by private buyers grew by a marginal 0.7% while the business sector rose 41.6%, although this equated to fewer than 500 additional units.

The zero emission transition, fuelled by manufacturer investment in model choice, hefty discounting, and a new fiscal incentive from government, drove battery electric vehicle (BEV) registrations up by 14.9% to reach a market share of 26.5% – the highest this year and the fourth highest on record. This replicates the pattern in 2023 and 2024, where August’s low overall registration volumes and high fleet concentration resulted in significantly larger BEV shares than those recorded across the rest of the year.

BEV growth was only outpaced by plug-in hybrid vehicle (PHEV) uptake, which rose by 69.4% to deliver an 11.8% market share. Hybrid electric vehicle (HEV) uptake, meanwhile, fell by 13.9% to account for 11.4% of the market.

In the first eight months of the year, the UK new car market is up 2.1% to a five-year peak of 1.265 million – although it still remains 16.7% down on pre-pandemic levels, with BEV share comprising 21.9%, below 2025’s nominal zero emission vehicle mandate target of 28%.

As that target approaches and ‘new number plate’ September, usually the second busiest month of the year, gets underway, accelerating EV uptake remains critical, the SMMT says. Around a quarter of BEV models are now eligible for the Electric Car Grant, which has the potential to increase demand over the coming months, the trade association notes.

GlobalData expects the UK car market to register around 1.99m units in 2025.

GlobalData says the forecast is subject to risks.

GlobalData analyst Jonathon Poskitt says the UK car market outlook remains challenging due to several headwinds. “The mood is somewhat cautious on the outlook,” he says. “There is a tightening of fiscal policy in prospect and the adverse impact of recent US tariffs – albeit mitigated by the US-UK trade deal. On the plus side, the government's ECG incentive, combined with extensive manufacturer discounting, augurs well for EV sales in September.”

Mike Hawes, SMMT Chief Executive, 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. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year. There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. With more models being added to the Government’s Electric Car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”