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 government targets, leading to a widening gap between consumer demand and official ambitions. Hawes specifically pointed to discounts worth thousands of pounds per vehicle as "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 from 2024, it still falls short of the government's stated target.

The automotive industry's reliance on substantial discounts to drive electric vehicle adoption raises concerns about the long-term viability of this strategy. The SMMT's warning highlights the need for a more sustainable approach to promoting electric vehicle uptake, potentially involving a combination of government incentives, infrastructure development, and technological advancements to reduce production costs and improve vehicle affordability. The industry group did not elaborate on specific alternative strategies.