New car sales in the UK grew by 3.5% last year, driven by a surge in demand for electric vehicles (EVs). According to the Society of Motor Manufacturers and Traders (SMMT), 2.02 million new cars were registered in 2025, marking the third consecutive year of growth. Registrations of pure battery EVs were up 23.9% year-on-year to 473,348, accounting for a market share of 23.4%.
The growth in EV sales is expected to place the UK as the second-largest EV market in Europe, behind Germany. The UK government's zero-emission vehicle mandate set a target for at least 28% of cars sold by each manufacturer to be zero-emission, but the actual sales requirement to avoid penalties was estimated to be lower, at 20.4%. SMMT chief executive Mike Hawes noted that while the rise in EV uptake is a positive trend, the pace is still too slow and the cost to industry is too high, with manufacturers discounting new EVs by a total of £5.5 billion in the UK last year.
The SMMT is urging the government to review its zero-emission vehicle mandate to create a more sustainable industry. The best-selling cars overall last year were the Ford Puma and the Kia Sportage, while the most popular pure battery EV was Tesla's Model Y.