June turned out to be the busiest month for UK car dealerships since the Covid pandemic, with a sharp rise in electric vehicle (EV) registrations. However, industry bodies caution that the current pace of EV adoption remains insufficient to meet government-set ZEV (Zero Emission Vehicle) mandate targets.

According to data released by the Society of Motor Manufacturers and Traders (SMMT), new car registrations in June saw a solid 11.4% increase, reaching 2,13,166 units — the highest for the month since 2019.

The SMMT attributed this growth entirely to the expanding range of electrified vehicles, citing the increasing number of low- and zero-emission cars on sale and the growing roster of manufacturers offering such models.

Plug-in hybrid electric vehicles (PHEVs) accounted for a 12.5% market share in June, up from 11.2% in June 2025, with sales climbing nearly 25% to just over 21,000 units.

Hybrid models also experienced a similar 25% growth, capturing a slightly higher share of the market. However, the most notable improvement came from fully electric cars, whose market share rose from 24.8% to 30%.

This marks the highest EV market share achieved so far this year and one of the highest ever recorded in the UK. The SMMT partly credited this growth to rising petrol and diesel prices, which have made plug-in models more appealing to buyers.

Earlier, Renault had reported what it termed a “seismic shift” in customer preferences due to increasing fossil fuel costs linked to the ongoing Iran conflict. The French automaker recorded a 42% surge in EV enquiries on its website in April, with electric models making up nearly half of its total registrations that month.

Despite this progress, EVs have captured only 25% of the UK car market so far this year — their strongest performance yet, but still below the 33% share required by the government’s ZEV mandate for 2026.

The SMMT explained that to achieve the mandated target by year-end, electric vehicles would need to comprise over 40% of monthly sales — a challenging prospect, given that internal combustion engine (ICE) models still account for roughly three-quarters of total sales.

Although certain flexibilities within the ZEV scheme are helping manufacturers remain compliant, the SMMT cautioned that “their value is diminishing as natural EV demand fails to grow at the pace expected.”

Even with a wider range of EVs now available and more sub-£40,000 models qualifying for discounts under the government’s Electric Car Grant, “uptake is still not rising fast enough, damaging profitability, diverting investment and weakening residual values,” the SMMT said.

The EV market share is under heightened scrutiny as the government consults with automakers on the feasibility of its annual ZEV targets, which currently require EVs to make up 80% of sales by 2030.

To meet that goal, manufacturers would have to increase their EV proportion by 220% within just four years — a target that SMMT says every major industry leader considers unattainable.

Recent reports suggested that the government was considering easing its 2030 requirement to a 50% EV market share, aligning more closely with natural sales growth trends. However, the resignation of Prime Minister Keir Starmer has thrown future policy adjustments into uncertainty.

Reiterating its call for “urgent reform of the mandate,” the SMMT pointed to the “unsustainable cost” manufacturers are bearing by heavily discounting EVs to improve their compliance rates. It warned that markets with “less restrictive regulations” are becoming more attractive destinations for automotive investment.

SMMT Chief Executive Mike Hawes commented, “June’s performance is very strong, showing EV uptake is growing, with battery-electric cars reaching their highest market share this year and more than half of buyers choosing electrified models. But even these record levels are still not enough to meet mandated targets.”

He added, “Manufacturers are investing billions in developing and launching these vehicles, and billions more promoting them, yet the market is not evolving fast enough. Reforming the mandate now is vital not only to sustain the transition but also to protect the UK’s competitiveness, attract fresh investment, and safeguard jobs.”