UK new car registrations rise 11.7% in July as EV sales reach record

London, United Kingdom. British new car registrations rose nearly 12% in July, their strongest performance since 2019, as battery electric vehicle sales reached a new record, industry data showed on Wednesday.

The Society of Motor Manufacturers and Traders said 156,571 new cars were registered during the month, up 11.7% from a year earlier, with BEVs accounting for 27.5% of the market.

EV demand and discounts

EV sales have been supported by higher fuel prices following the Iran war, a wider selection of lower-cost models, government grants and manufacturer discounts.

However, growth remained below the pace required to meet government targets on the path to net zero. Automakers have used substantial discounts to support demand and avoid compliance costs linked to EV sales requirements.

“July’s record EV 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 EV discounts, distorting demand to avoid even steeper penalties,” SMMT chief executive Mike Hawes said in a statement.

Forecasts remain below targets

The SMMT raised its forecast for BEVs’ share of total car sales in 2026 to 27.4%, from the 26.8% forecast issued in April. The projection remains below the government’s 33% mandate target.

BEVs are now expected to account for 32.1% of new car sales in 2027, compared with a mandate target of 38%.

Data published by New Automotive on Tuesday put the BEV market share at 27.4% in July. The two organisations use different data sources and calculation methods.