UK new car market enjoys strongest July since 2019 as EV registrations surge – but ZEV target gap remains
The UK’s new car market delivered its strongest July performance since before the pandemic, with battery electric vehicles (BEVs) achieving another record market share. However, the Society of Motor Manufacturers and Traders (SMMT) has warned that the industry’s progress continues to rely on costly manufacturer incentives, leaving a significant gap between consumer demand and the government’s Zero Emission Vehicle (ZEV) mandate.
According to the latest SMMT registration figures, 156,571 new cars were registered during July, representing an 11.7% increase compared with the same month last year and marking the best July performance since 2019. Battery electric vehicles accounted for 27.5% of all new registrations – the highest July share on record.
EV demand continues to grow
Electric vehicle demand continues to strengthen as motorists respond to an expanding choice of models, government purchase incentives and increasing running-cost advantages over petrol and diesel vehicles.
The SMMT has subsequently revised its forecast for battery electric vehicle market share during 2026 upwards to 27.4%. While this reflects encouraging momentum, it still falls well short of the government’s headline target requiring 33% of new car registrations to be zero-emission this year.
SMMT Chief Executive Mike Hawes welcomed the record performance but cautioned that the figures mask the financial burden placed on manufacturers.
He warned that the current level of EV uptake has only been achieved through billions of pounds of manufacturer discounting designed to stimulate demand and avoid regulatory penalties.
Pressure remains on manufacturers
Despite improving consumer demand, manufacturers continue to absorb substantial costs to meet increasingly demanding ZEV targets.
The automotive industry has consistently argued that while EV adoption is moving in the right direction, market demand is still not naturally keeping pace with regulatory expectations.
SMMT forecasts that even by 2027, battery electric vehicles are expected to account for around 32.1% of registrations, still below the government’s planned 38% target.
The organisation continues to call for policies that encourage sustainable consumer demand rather than relying on heavy discounting by vehicle manufacturers.
What it means for garages
For independent garages and MOT businesses, the latest figures reinforce the long-term direction of travel.
More battery electric vehicles entering the UK parc means workshops should continue investing in:
- EV servicing and repair training
- High-voltage safety equipment
- Battery diagnostic capability
- ADAS calibration services
- Software updates and electronic diagnostics
However, despite rapid EV growth, petrol, diesel and hybrid vehicles will continue to dominate workshop activity for many years due to the age profile of the UK’s vehicle fleet.
For most independent garages, the priority remains developing EV capability alongside maintaining expertise across internal combustion and hybrid vehicles.
Looking ahead
The July registration figures demonstrate that UK motorists are increasingly embracing electric vehicles, but the pace of adoption remains a source of concern for manufacturers.
With ZEV mandate targets becoming progressively more demanding over the coming years, the industry is expected to continue pressing government for greater policy flexibility and stronger consumer incentives.
For the automotive aftermarket, the message is clear: EVs are becoming a larger part of the UK vehicle parc every month, but workshops must be prepared to support a mixed fleet for the foreseeable future.
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