SMMT: New car market shrinks in August but EVs reach record share for the year

• New car market declines -2.0% in August to 82,908 units during typically quietest month of the year.
• Model choice, ongoing manufacturer discounts and some limited initial impact from the newly announced Electric Car Grant helped drive battery electric car share to 26.5%, the highest recorded in 2025, replicating previous performances for low volume month.
• September – usually the second biggest month of the year – critical for delivering BEV growth as new Electric Car Grant takes effect, with YTD market share at 21.9%.

UK new car registrations declined by -2.0% in August to 82,908 units, during what is normally the quietest month of the year – generally accounting for less than 5% of annual deliveries ahead of September's number plate change.

Fleet uptake dominated the month, accounting for 59.1% of all new vehicles reaching the road despite a -4.6% reduction in volumes. Uptake by private buyers grew by a marginal 0.7% while the business sector rose 41.6%, although this equated to fewer than 500 additional units.

The zero emission transition, fuelled by manufacturer investment in model choice, hefty discounting, and a new fiscal incentive from government, drove battery electric vehicle (BEV) registrations up by 14.9% to reach a market share of 26.5% – the highest this year and the fourth highest on record.¹ This replicates the pattern in 2023 and 2024, where August's low overall registration volumes and high fleet concentration resulted in significantly larger BEV shares than those recorded across the rest of the year.²

BEV growth was only outpaced by plug-in hybrid vehicle (PHEV) uptake, which rose by 69.4% to deliver an 11.8% market share. Hybrid electric vehicle (HEV) uptake, meanwhile, fell by -13.9% to account for 11.4% of the market.

In the first eight months, the new car market is up 2.1% to a five-year peak of 1.265 million – although it still remains -16.7% down on pre-pandemic levels, with BEV share comprising 21.9%, below 2025's nominal zero emission vehicle mandate target of 28%.³

As that target approaches and ‘new number plate' September, usually the second busiest month of the year, gets underway, accelerating EV uptake remains critical. Around a quarter of BEV models are now eligible for the Electric Car Grant, which has the potential to increase demand over the coming months. Combined with action to accelerate affordable, reliable and convenient charging solutions, the year-to-date market share of EVs should increase as the industry strives to deliver on government ambition.

Mike Hawes, SMMT Chief Executive, said, “August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year. There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. With more models being added to the Government's Electric Car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”