The UK automotive industry is showing a mixed picture as the Society of Motor Manufacturers and Traders (SMMT) releases its latest data.
While the used car market has rebounded to pre-pandemic levels, new electric vehicle (EV) sales are facing a short-term slowdown, prompting calls for urgent policy clarity and infrastructure investment.
Figures for the first half of the year show 4 million used car transactions – the highest since before the pandemic. Electrified models made up one in ten sales, with battery electric vehicles (BEVs) taking a record 3.4% market share. SMMT Chief Executive Mike Hawes said the trend proved that “where there is affordability and choice, consumer demand will follow,” signalling strong appetite for EVs when competitive pricing and product variety are available.
In contrast, the new car market posted its weakest July since 2022, with EV growth slowing compared with recent momentum. Hawes attributed this to uncertainty around the government’s new Electric Car Grant (ECG), with buyers pausing decisions until details on qualifying models are confirmed. Despite the slowdown, year-to-date registrations remain ahead of 2024, with more than 250,000 electric cars sold thanks to expanded model ranges and strong manufacturer discounts. SMMT has revised its 2025 market forecast upwards to 1.986 million units, predicting EVs will account for 23.8% of sales — still below the 28% target.
The light commercial vehicle (LCV) sector offers a lesson in market stimulation. Following the extension of the plug-in van grant, electric van uptake has grown for eight consecutive months, despite the wider LCV market being in decline. However, EV vans currently hold just over half of the mandated 16% share, underlining the need for further action.
Hawes stressed that unlocking investment in charging infrastructure and speeding up grid connections is vital. Without these measures, uptake targets could be missed, particularly in the commercial sector where operational range and charging availability are critical. The emerging used EV sector’s strong performance highlights the importance of a robust new market to maintain supply. Hawes concluded that only through “clear supportive fiscal policies and investment in infrastructure” can the UK fully realise its zero-emission ambitions and deliver a cleaner, greener automotive future.
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