June 2025 UK Car Market Review: Best June Since 2019, EVs Reach One-in-Four Sales

The UK car market surged in June, showing its strongest performance since June 2019, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Registrations jumped 6.7% year‑on‑year to 191,316 units, marking the second consecutive month of growth and pushing the first-half total 3.5% above 2024 levels, though still 17.9% below pre-pandemic figures.

Fleet vs Private Sales

• Fleet registrations saw the biggest gain, rising 8.5% to 114,841 units, making up 60% of the market.
• Private buyer registrations also increased by 5.9%, totaling 71,616 units.
• Business registrations dropped 15.8% to 4,859 units.
• Electrification Powering Growth
• Electric vehicles continued to lead the charge in June:
• BEVs (Battery Electric Vehicles) rose 39.1%, with 47,354 sold, capturing 24.8% of all new registrations.
• PHEVs (Plug-in Hybrid EVs) climbed 28.8% to 21,382 units, a 11.2% share.
• HEVs (Hybrid EVs) declined by 8.5% to 23,835 units.
• BEVs, PHEVs, and HEVs combined made up 48.5% of the total June market .
• As of June, electric vehicle registrations have surged 34.6% year‑to‑date, reaching 224,841 units, and accounting for 21.6% of registrations — still slightly behind the 28% ZEV mandate.

Policy & Industry Pressure

Mike Hawes, Chief Executive of SMMT, highlighted the importance of strategic support:
“That EV growth… is still being driven by substantial industry support… Without government action—through measures like VAT cuts or revising luxury tax supplements—meeting the ZEV mandate targets remains in jeopardy.”

Deloitte’s Jamie Hamilton also emphasised the need for improved infrastructure:
“This comes as the government further reinforced its commitment… As sales of battery electric vehicles continued to rise… the goal now must be for electric vehicles to be supported by accessible, consumer-friendly infrastructure.”

Brand Highlights: Tesla, BYD & Ford

• Tesla UK sales in June rose 12% to 7,891 units, buoyed by its updated Model Y.
• BYD, the Chinese manufacturer, saw a four-fold increase, selling 2,498 units in June alone.
• Ford EV sales in the UK grew more than four-fold in the first half of 2025, the strongest growth among mainstream brands.

June 2025 marks a significant milestone: the best June since 2019, with electric vehicles making up a quarter of all new registrations. But the road ahead demands continued policy backing, infrastructure rollout, and industry incentives to cement the EV transition and meet mid-decade climate targets.

Governement Scheme - July 2025

The UK government has launched a new Electric Car Grant offering up to £3,750 off eligible new EVs priced under £37,000, aiming to make green vehicles more affordable and accelerate the shift to zero-emission transport. The scheme, which began in July 2025 and runs until 2028/29, incentivises buyers with either a £3,750 or £1,500 discount depending on the vehicle’s sustainability credentials.

With EVs already saving drivers an estimated £1,500+ annually on fuel and running costs, this grant further narrows the cost gap between petrol and electric vehicles. However, as EVs tend to depreciate faster than petrol cars, GAP insurance becomes an essential safeguard.

GAP insurance protects owners financially if their car is written off, covering the shortfall between the insurer’s payout and what’s still owed on a finance or lease deal. This is especially important given the steep depreciation rates, potential volatility in used EV values, and the structure of EV financing.

For those considering a switch to electric, combining the grant with GAP insurance ensures both immediate savings and long-term peace of mind, protecting against financial loss and depreciation risks in a rapidly evolving market. It’s a smart move for drivers going green with confidence.