New electric car registrations jumped more than 44% in July compared with the same period last year, according to the latest data published by the Society of Motor Manufacturers and Traders (SMMT).
The SMMT numbers showed that a total of 43,106 EVs were sold throughout the month, representing a 44.5% year-on-year increase from July 2025 and accounting for 27.5% of the whole new car market.
While that was slightly down on the 30% share in June, July’s figure still represented a 6.2% increase on EVs’ market share in July 2025.
These figures sparked optimism amongst industry figureheads that EVs will reach 27.4% of the market by the end of 2026, representing a slight increase over the previous forecast of 26.8%. Nonetheless, this still falls short of the UK Government’s 2026 Zero Emissions Vehicle (ZEV) mandate target of 33%.
The UK Government’s Electric Car Grant (ECG) was cited as a key factor in the UK’s EV adoption, as was its recent decision to temporarily cut VAT on domestic electricity bills from 5% to 0% for six months from October 1 this year.
Introduced by former Prime Minister Sir Kier Starmer’s cabinet in July 2025, the ECG offers a £1,500 to £3,750 discount on brand new EVs priced up to £37,000. Yet several manufacturers do not qualify for the ECG because they do not meet its sustainability targets related to vehicle and battery production. As such, they have introduced their own in-house price cuts in response to the Government’s discount.
The SMMT believes this approach causes non-ECG-qualifying manufacturers to lose billions.
Its chief executive, Mike Hawes, said: “July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero-emission mobility. But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts.
“The sector’s commitment to decarbonisation is not in doubt, but its ability to remain viable – and attract investment for an EV future – is under intense pressure. A sustainable transition will not happen merely by compelling supply when underlying demand is not keeping pace despite year-on-year growth.
“We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.”
Melanie Lane, the CEO of home charger supplier Pod, expressed more optimism in her outlook. She added: “Another major year-on-year increase in July and a market share now comfortably above one in four new registrations show we’re well beyond the tipping point. We’re seeing underlying demand translate into sales as more consumers and businesses recognise the long-term cost and convenience benefits of driving electric.
“Nurturing that demand and making those benefits clear, rather than weakening commitments, is what will keep the UK ahead of its ZEV mandate trajectory. The Government’s VAT cut on household electricity is another positive step, but now is the time to be ambitious, back the mandate and support investment in the UK’s electric future.”
