The UK new car market continued its strong recovery in June, posting its best performance for the month since 2019. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), 213,166 new cars were registered during the month, representing an 11.4% increase compared to the same period last year.
Growth was recorded across every buyer segment, with demand driven almost entirely by electrified vehicles. Battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and conventional hybrids (HEVs) all expanded their market share as manufacturers continued to introduce new models and offer substantial incentives.
Private, Fleet and Business Demand All Increased
Private registrations climbed 12.5% in June, while fleet purchases increased by 10.5%. The business sector recorded the strongest growth, rising 17.1%.
Despite healthy gains across all channels, fleet operators remained the dominant force in the market, accounting for nearly 60% (59.5%) of all new car registrations.
Battery Electric Vehicles Reach Highest Share of 2026
Electric vehicles continued to be the biggest growth driver.
Battery electric vehicles captured 30.0% of the UK market in June, their highest monthly share so far this year. The result reflects the traditional end-of-quarter surge in registrations, combined with increased consumer interest as higher fuel prices encouraged more buyers to consider electric mobility.
Hybrid models also continued to perform well:
– Plug-in hybrid vehicles (PHEVs): 12.5% market share
– Hybrid electric vehicles (HEVs): 14.0% market share
Together, electrified vehicles represented more than half of all new car registrations during the month, highlighting the continued shift away from conventional petrol and diesel models.
EV Market Still Falls Short of Government Targets
Although battery electric vehicles have reached a record 25.0% market share year-to-date, the figure remains well below the UK’s Zero Emission Vehicle (ZEV) mandate target of 33%.
To achieve that goal, BEVs would need to account for more than 40% of all new car registrations during the remainder of the year—an ambitious target considering that three out of four buyers are still choosing alternative powertrains.
Automakers continue to support EV adoption through significant incentives, with more than £12 billion invested in discounts alongside expanding model ranges. However, the industry argues that consumer demand is not increasing quickly enough to meet regulatory requirements.
Industry Calls for Reform
According to the latest SMMT UK Automotive Business Leaders Barometer, every automotive executive surveyed believes the UK is currently behind the trajectory needed to achieve the government’s 2030 zero-emission vehicle ambitions. Nearly three-quarters of respondents said the market is significantly behind where it needs to be.
Manufacturers warn that the current cost of complying with ZEV regulations is reducing profitability, weakening residual values, and making the UK less competitive for future automotive investment compared with markets operating under less restrictive policies.
SMMT: EV Transition Needs Stronger Market Conditions
SMMT Chief Executive Mike Hawes welcomed June’s strong sales performance but stressed that current EV growth remains insufficient to satisfy mandated targets.
He noted that manufacturers are investing billions of pounds in developing new electric vehicles and providing substantial incentives to encourage sales. However, without stronger consumer demand and reforms to the existing mandate, the UK risks undermining investment, competitiveness, and employment within its automotive industry.
Outlook
June’s results underline the continued momentum of the UK automotive market and the growing popularity of electrified vehicles. Battery electric cars are achieving record market share, while hybrids remain an increasingly important part of the transition.
Even so, the latest figures also highlight the widening gap between current consumer demand and the government’s ambitious electrification targets. With the second half of the year now underway, industry leaders will be watching closely to see whether EV adoption accelerates—or whether regulatory changes become necessary to keep the UK’s transition on track.
[source: SMMT]
