Mike Hawes, SMMT chief executive, described the overall result as "reasonably solid amid tough economic and geopolitical headwinds." However, he cautioned that electric car sales were not growing quickly enough to meet official targets, leading to a widening gap between consumer demand and governmental ambitions. Hawes specifically stated that discounts amounting to thousands of pounds per vehicle were "unsustainable."

A total of 2,020,373 new cars were registered in 2025, marking the third consecutive year of growth and the highest total since the pandemic. This figure, however, remains below the 2.3 million cars sold in 2019. Electric cars accounted for 473,340 new registrations last year, representing a market share of 23.4%. While this is a significant increase compared to 2024, it still falls short of the government's target.

The automotive industry's reliance on significant discounts to drive electric vehicle adoption raises concerns about the long-term viability of this strategy. These discounts, while effective in attracting consumers, place a financial strain on manufacturers and may not be sustainable as the market matures. The SMMT's warning highlights the need for a more comprehensive approach to promote electric vehicle adoption, including government incentives, infrastructure development, and public awareness campaigns.

The current situation underscores the challenges in transitioning to a fully electric vehicle market. While consumer interest in electric vehicles is growing, factors such as higher purchase prices, limited charging infrastructure, and range anxiety continue to hinder widespread adoption. The automotive industry and the government must work together to address these challenges and create a sustainable ecosystem for electric vehicles. Future developments will likely focus on reducing battery costs, expanding the charging network, and educating consumers about the benefits of electric vehicles.