The brand new automotive market recorded its second consecutive month of progress in June, with registrations rising 6.7% year-on-year to 191,316 items, in line with new figures revealed by the Society of Motor Producers and Merchants (SMMT).
It was the strongest June efficiency since 2019, serving to to raise the year-to-date whole 3.5% above the identical interval final yr. Nevertheless, the market nonetheless sits -17.9% beneath pre-pandemic ranges.
Fleet gross sales continued to drive the restoration, up 8.5% to 114,841 items, whereas personal retail demand additionally grew, albeit at a slower tempo, rising 5.9% to 71,616 items. Enterprise registrations declined sharply, down -15.8% to 4,859 items.
Regardless of the market’s momentum, SMMT warned that the transition to electrical automobiles (EVs) stays fragile and closely reliant on industry-funded incentives.
“A second consecutive month of progress for the brand new automotive market is sweet information, as is the optimistic efficiency of EVs,” mentioned Mike Hawes, SMMT chief govt.
“That EV progress, nonetheless, continues to be being pushed by substantial {industry} help with producers utilizing each channel and unsustainable discounting to drive exercise, but it stays beneath mandated ranges.”
Electrified automobiles now account for practically half (48.5%) of all new registrations, with battery electrical automobiles (BEVs) making up 24.8% of the June market due to a 39.1% year-on-year rise to 47,354 items.
Plug-in hybrids (PHEVs) additionally noticed sturdy progress, up 28.8% to 21,382 items. In distinction, the hybrid electrical car (HEV) market shrank by -8.5%, whereas new petrol registrations dropped -4.2% and diesel volumes remained flat.
> MORE: New automotive market registrations by model
Within the first half of 2025, BEV gross sales have surged 34.6% to 224,841 items – however this nonetheless falls in need of the 28% market share mandated for the yr, with the present determine standing at simply 21.6%.
The hole, SMMT famous, has been bridged by way of £6.5 billion in industry-funded reductions over the previous 18 months.
“As we’ve got seen in different nations, authorities incentives can supercharge the market transition, with out which the local weather change ambitions all of us share will likely be below risk,” Hawes warned.
A latest SMMT survey of automotive CEOs discovered that 55% consider the UK is “considerably behind plan” in its objective to ban the sale of recent petrol and diesel vehicles by 2030.
SMMT has known as for pressing authorities motion to stimulate personal demand for BEVs, together with revising the not too long ago launched Car Excise Obligation (VED) Costly Automobile Complement (ECS). The ECS, now utilized to EVs, is predicted to value patrons over £360 million this yr alone – a transfer SMMT says is appearing as a “brake” on demand.
Amending the ECS to exclude most BEVs and reducing VAT on new EVs and public charging might unlock substantial progress. In line with {industry} modelling, such measures might ship an extra 267,000 BEVs over three years, reducing six million tonnes of CO? yearly.
“Fiscal incentives for personal BEV gross sales are the largest single motion wanted to spice up BEV demand, financial progress and the UK’s automotive manufacturing base – a key goal of presidency’s new Industrial Technique,” Hawes mentioned.
“The brand new automotive market in June has significantly grown, with a 6.7% enhance in registrations.” mentioned Sue Robinson, chief govt of the Nationwide Franchised Sellers Affiliation (NFDA), which represents franchised automotive and business car retailers within the UK commenting on the newest SMMT new automotive registration figures.
Robinson concluded: “While NFDA is happy to see the brand new car market’s progress, we’re involved that the macro atmosphere stays troublesome for franchised sellers. The {industry} nonetheless faces a number of pressures corresponding to weak financial progress, inflation above BoE’s goal and results from April’s coverage modifications. Electrical automobiles will possible proceed their enhance nonetheless they continue to be beneath the stretching ZEV Mandate targets for 2025. We can even monitor whether or not the funding for EVs introduced within the Chancellors Spending Evaluation will contribute to additional progress.”
