New automotive gross sales hit 2m, however EV reductions cannot go on, warns SMMT | EUROtoday

Government reductions for electrical automobiles are “unsustainable”, a significant motoring group has warned, because the variety of new automobiles registered within the UK exceeded two million final 12 months for the primary time for the reason that pandemic.

Nearly 500,000 of the brand new automobiles bought have been electrical, in accordance with new figures from the Society of Motor Manufacturers and Traders (SMMT).

Its chief govt, Mike Hawes, welcomed what he known as a “reasonably solid result amid tough economic and geopolitical headwinds”.

But electrical automotive gross sales have been nonetheless not rising quick sufficient to fulfill official targets, he stated, warning of a rising hole between shopper demand and the federal government’s ambitions. Discounts price 1000’s per automobile have been “unsustainable”, he stated.

In whole, 2,020,373 new automobiles have been registered in 2025. This was the third successive 12 months of progress, and the very best whole for the reason that pandemic. However it was nonetheless properly in need of the two.3 million bought in 2019.

Electric automobiles accounted for 473,340 new registrations final 12 months, giving them a market share of 23.4%.

That was a major enhance on 2024, however nonetheless under the federal government’s headline goal of 28%, below what is called the Zero Emission Vehicles Mandate (ZEV Mandate).

The mandate stipulates that carmakers which fail to promote sufficient electrical automobiles, as a share of their total gross sales, can face heavy fines.

However, there are concessions constructed into the principles which might allow them to keep away from penalties, for instance by decreasing emissions from different automobiles of their fleets, or by shopping for surplus ’emissions credit’ from producers which exceed their very own targets.

These ‘flexibilities’ have been prolonged in April, following heavy lobbying by some producers, whereas the fines for failing to conform have been lowered.

But Mr Hawes warned that even so, carmakers have been having to supply hefty reductions so as to promote sufficient electrical fashions. The SMMT estimates these reductions have been price greater than £5bn final 12 months, or some £11,000 for each electrical automobile bought.

Mr Hawes stated this was unsustainable, particularly with producers anticipated to fulfill a extra arduous goal of 33% this 12 months. He known as on the federal government to convey ahead a deliberate evaluation of the ZEV Mandate, as a result of be carried out in 2027.

“It is increasing the number of battery electric vehicles (BEVs) being sold,” he stated. “The question is, at what cost?”

Such a evaluation, he steered, ought to have a look at components which have modified considerably for the reason that targets have been first deliberate, together with a marked enhance in power costs and better prices for uncooked supplies, which have made life harder for automotive producers.

He stopped brief, nonetheless, of explicitly calling for the principles to be diluted additional.

“Don’t get me wrong – the industry is not diverting course,” he insisted.

“It needs to sell these vehicles because it has invested so heavily in them. But you need to make sure the market reflects more closely the actual level of demand.”

Some commentators are extra constructive concerning the ZEV Mandate, nonetheless.

Colin Walker of the Energy and Climate intelligence Unit, an environmental analysis group, welcomed the newest registration figures.

“2025 has been another bumper year for EV sales, with nearly one in four cars sold in 2025 being an EV,” he stated.

“This policy in turn will boost the UK’s second-hand market where the majority of us buy our cars, easing cost of living concerns for drivers.”

The authorities has introduced ahead numerous measures to help the take-up of electrical automobiles over the previous 12 months.

They embrace the £1.3bn Electric Car Grant Scheme, which offers as much as £3,750 in the direction of the price of shopping for an electrical automobile, in addition to vital funding for charging infrastructure

However, within the autumn funds, it additionally introduced plans to introduce a ‘per mile’ tax on electrical automobiles – a measure designed to offset a few of the discount in gas obligation revenues brought on by the transition to electrical automobiles.

The impartial Office for Budget Responsibility stated the transfer was more likely to lead to 440,000 fewer electrical automobiles being bought over a five-year interval.

“This is one of the challenges we see,” stated Mr Hawes.

“To have a technological shift like this, you need consistent, coherent and compelling messaging and support… Even the announcement of a tax specifically on EVs will send a very conflicting message to consumers.”