New car registrations in the United Kingdom surpassed two million in 2025, marking the first time this threshold has been reached since the onset of the global pandemic, but the Society of Motor Manufacturers and Traders (SMMT) cautioned that current electric vehicle (EV) discount levels are unsustainable. The SMMT reported that nearly 500,000 of the new cars sold were electric.

The total number of new cars registered reached 2,020,373. While this represents the third consecutive year of growth, the figure remains below the 2.3 million cars sold in 2019, prior to the pandemic's disruption of global supply chains and shifts in consumer behavior. Electric cars accounted for 473,340 new registrations, securing a 23.4% market share.

Mike Hawes, chief executive of the SMMT, described the sales figures as a "reasonably solid result amid tough economic and geopolitical headwinds." However, Hawes expressed concern that the rate of EV sales growth is insufficient to meet government targets, highlighting a widening gap between consumer demand and official ambitions. He specifically pointed to discounts, which can amount to thousands per vehicle, as "unsustainable" in the long term.

The automotive industry globally is grappling with the transition to electric vehicles, a shift driven by increasingly stringent emissions regulations in Europe, North America, and parts of Asia. Governments worldwide are employing a mix of incentives, including direct subsidies, tax breaks, and the development of charging infrastructure, to encourage EV adoption. However, the long-term financial viability of these incentives is a subject of ongoing debate, particularly as governments face competing demands on public resources.

The European Union, for example, has set ambitious targets for phasing out internal combustion engine vehicles, prompting manufacturers to invest heavily in electric vehicle technology. China, the world's largest auto market, has also been a major driver of EV adoption, with government support playing a crucial role. The United States, through the Inflation Reduction Act, is offering significant tax credits for EV purchases and domestic battery production.

The SMMT's warning about unsustainable discounts reflects a broader concern within the automotive industry about the affordability of electric vehicles for mainstream consumers. While EV prices have been declining, they generally remain higher than comparable gasoline-powered cars. The availability of charging infrastructure, particularly in rural areas and apartment complexes, also remains a barrier to wider adoption.

Looking ahead, the SMMT is urging the UK government to develop a long-term strategy for supporting the electric vehicle market, one that balances consumer incentives with investments in infrastructure and skills training. The organization argues that a stable and predictable policy environment is essential for attracting investment and ensuring that the UK remains a competitive player in the global automotive industry.