Electric vehicles gained a record market share of 23.4% in 2025, with sales growing nearly a quarter and 160 models available to buyers – that's according to the latest numbers from car industry body the Society of Motor Manufacturers and Traders. Despite the healthy sales, carmakers were forced to discount their cars at a cost of £11,000 each in order to hit strict zero emission vehicle targets set by the government. 

SMMT boss Mike Hawes briefed on the numbers ahead of the announcement, saying that overall UK car registrations were up 3.5% in 2025, hitting over two million sales for the first time since 2019. He said that despite the positive growth in numbers the new car market remained very tough, with manufacturers having to sell a higher proportion of EVs than the demand was there for. Electrifying revealed just before Christmas that Renault had bumped up its finance deal costs just days after its 4 and 5 models were made eligible for the grant. 

While the SMMT welcomed the return of grants for electric vehicles, with the government offering subsidies of £1,500 and £3,750 for electric cars that meet certain criteria, Hawes did say that the scheme could have been launched better, and that it still only applies to around a quarter of electric cars on sale. He's called for a more coherent approach from the government, saying that the new pay per mile tax, increased costs for running an electric vehicle in London and the high cost of public charging were sending mixed messages to consumers. 

The SMMT’s quarterly market forecast is also due to be published at the end of January, and it will take into account the announcements made by the chancellor in November’s budget statement. The SMMT thinks that the pay per mile tax is going to have a bigger impact on long term EV prospects than previously thought, and it is calling on the government to review how it’s encouraging consumers to go electric and the targets that it is setting for manufacturers to sell zero emission vehicles. 

Electrifying founder Ginny Buckley says that the 2026 targets will be even tougher to meet: “Moving EV sales from one in four new car sales today to one in three by the end of the year won’t happen on momentum alone. Alongside the growing choice of EVs, buyers need confidence, clear messaging and policy stability from government. Research carried out by Electrifying.com and the AA, based on responses from more than 12,000 UK drivers, shows that 75% of non-EV drivers still don’t feel confident about the prospect of driving an electric car – highlighting that education, not uncertainty, is what will unlock the next wave of EV buyers.”

Buyers need encouragement so they can feel confident about going electric, says Ginny Buckley