UK motorists are demonstrating a clear preference for electric vehicles, with sales surging dramatically over the past year. This trend persists despite the looming introduction of the Labour government's contentious pay-per-mile taxation scheme.
Record Registrations Defy Economic Headwinds
Over the last twelve months, the UK saw almost 500,000 new battery electric and hybrid cars registered. This impressive figure contributed to a substantial 26 per cent increase in overall new vehicle registrations. Electric models alone accounted for 473,340 of these new registrations, securing a 23.4% market share.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), described this as a "reasonably solid result" given the challenging economic and geopolitical climate. However, he issued a stark warning that this growth rate is insufficient to meet the government's official targets, highlighting a widening gap between consumer appetite and political ambition.
Industry Leaders Sound Alarm on Sustainability
The automotive sector is pushing for immediate government action. Mike Hawes has called for a planned review of the Zero Emission Vehicle (ZEV) Mandate to be brought forward from 2027. He acknowledged that the mandate is successfully increasing battery electric vehicle (BEV) sales but questioned the long-term cost, stating that the deep discounts of thousands of pounds per vehicle currently needed to stimulate demand are "unsustainable".
"The industry is not diverting course," Hawes 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."
Calls for Policy Alignment with Global Markets
This sentiment is echoed at the highest levels of the industry. Eurig Druce, group managing director for Stellantis in the UK (owner of Vauxhall, Peugeot, and Citroen), has urged for the ZEV Mandate review to occur early this year. He argues that the UK is increasingly out of step with Europe and the rest of the world, creating an unlevel playing field for manufacturers and consumers.
In response, a Government spokesperson defended its strategy, stating: "We're investing over £7.5billion to support drivers and manufacturers make the switch to zero emission. This includes a £4billion investment to back British manufacturing and R&D, create jobs, and drive growth in the sector."
Meanwhile, industry analyst Charles Lester from Benchmark predicts that the combination of the ZEV mandate and continued brand subsidies will provide a further boost to electric car sales throughout 2026, suggesting this defiant trend among British drivers is set to continue.
