What's happened
In June 2025, UK car registrations rose 6.7% year-on-year, driven by a 39% increase in battery electric vehicle sales. Despite ongoing challenges, this marks the best June since 2019, with electric vehicles comprising a quarter of total sales. The recent US-UK trade deal also aims to support the automotive sector.
What's behind the headline?
Key Insights:
- Sales Growth: UK electric car sales increased by 34.6% in the first half of 2025, totaling 224,838 units. This growth is significant despite the overall market still lagging behind pre-pandemic levels.
- Market Dynamics: Tesla remains a leading seller, but Ford has shown the fastest growth in electric vehicle sales, indicating a competitive shift in the market.
- Consumer Behavior: Discounts and incentives are driving electric vehicle purchases, but these may not be sustainable long-term. The industry must improve charging infrastructure to support continued growth.
- Trade Implications: The recent US-UK trade deal, which lowers tariffs on British car exports, could further stimulate the market, allowing manufacturers to compete more effectively in the US.
- Future Outlook: As electric vehicles become more mainstream, the industry is likely to see continued growth, but it will depend on addressing infrastructure challenges and maintaining consumer interest.
What the papers say
According to the NY Post, the Society of Motor Manufacturers and Traders (SMMT) reported a 6.7% increase in UK car registrations in June, with electric vehicle sales rising 39%. The Guardian highlighted that electric car sales accounted for nearly a quarter of total sales, marking the best June since 2019. However, the SMMT's Chief Executive Mike Hawes cautioned that this growth is heavily reliant on industry support and discounts, which may not be sustainable. Additionally, the Guardian noted that Ford's electric sales have surged, indicating a shift in market dynamics. The recent trade deal with the US, which reduces tariffs on British car exports, is expected to bolster the automotive sector further.
How we got here
The UK automotive industry has faced significant challenges, including a cost of living crisis and tariffs imposed by the US. However, recent data shows a rebound in electric vehicle sales, aided by government incentives and a new trade agreement with the US that reduces tariffs on exports.
Go deeper
- What factors are driving the increase in electric car sales?
- How does the new trade deal affect the automotive industry?
- What challenges does the UK car market still face?
Common question
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What Factors Are Driving the Surge in UK Electric Car Sales?
In June 2025, the UK witnessed a remarkable surge in electric vehicle sales, with battery electric vehicles accounting for nearly a quarter of total car registrations. This growth raises questions about the underlying factors contributing to this trend, the impact of recent trade agreements, and what the future holds for electric vehicle adoption in the UK. Below, we explore key questions surrounding this dynamic market.
More on these topics
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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The Society of Motor Manufacturers and Traders is the trade association for the United Kingdom motor industry. Its role is to "promote the interests of the UK automotive industry at home and abroad."