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) discounts 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 and the highest total since the pandemic's disruption of global supply chains, it remains below the 2.3 million vehicles sold in 2019, before the pandemic. Electric vehicles accounted for 473,340 new registrations in the past year, 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, he also expressed concern that the rate of EV sales growth is insufficient to meet government targets, highlighting a widening disparity between consumer demand and governmental ambitions for electric vehicle adoption. Hawes stated that the discounts, which can amount to thousands per vehicle, are "unsustainable" in the long term.
The reliance on incentives to drive EV sales raises questions about the long-term viability of the transition to electric mobility, particularly when compared to strategies employed in other nations. For example, Norway, a global leader in EV adoption, has utilized a combination of tax incentives, road toll exemptions, and access to bus lanes to stimulate demand. China, the world's largest auto market, has implemented a complex system of subsidies and regulations to promote domestic EV production and consumption. The European Union is also grappling with the challenge of accelerating EV adoption through its "Fit for 55" package, which includes stricter emissions standards for vehicles.
The UK government has set ambitious targets for phasing out the sale of new petrol and diesel cars by 2030, with all new cars and vans to be fully zero emission at the tailpipe from 2035. Achieving these goals will require a significant increase in EV sales and a corresponding expansion of charging infrastructure. The SMMT's warning underscores the need for a comprehensive and sustainable strategy to support the transition to electric vehicles, taking into account both consumer affordability and the long-term health of the automotive industry. The debate continues on how best to balance government support, manufacturer investment, and consumer demand to achieve a successful and equitable transition to electric mobility on a global scale.
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