New data has revealed a significant slowdown in the growth of electric vehicle (EV) registrations across England, with industry leaders calling it a stark "wake-up call" for the government. The figures come just as ministers confirm plans to introduce a new pay-per-mile tax for zero-emission cars.
Slowest Growth in Two Years
According to the latest statistics from the Society of Motor Manufacturers and Traders (SMMT), a total of 39,965 new pure battery electric vehicles were registered in November 2025. This represents a year-on-year increase of just 3.6% compared to November 2024.
This marginal rise marks the smallest annual growth rate seen since December 2023, when registrations actually fell by a steep 34.2%. That previous decline was attributed to supply chain issues and an unusually strong performance in December 2022.
The broader context is also challenging. The wider new car market contracted by 1.6% last month, with only 151,154 new vehicles registered overall. The SMMT points to a 5.5% drop in demand from private buyers as the reason behind this sixth monthly decline in registrations this year. In contrast, fleet purchases by businesses saw a negligible rise of just 0.2%.
Industry Warning as New Tax Announced
The softening demand for electric vehicles coincides with a major policy shift from the government. In her Autumn Budget on November 26, 2025, Labour Chancellor Rachel Reeves announced that drivers of battery electric vehicles will face a new Vehicle Excise Duty charge of 3p per mile from April 2028.
This move is a direct response to the Treasury's concern over falling fuel duty revenues, as more motorists switch away from petrol and diesel cars. However, the head of the SMMT has issued a strong warning about the timing and potential impact.
Mike Hawes, SMMT Chief Executive, stated: "Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need. But the weakest growth for almost two years – ahead of Government announcing a new tax on EVs – should be seen as a wake-up call."
He emphasised that a sustained increase in demand for EVs cannot be taken for granted. "We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so," Hawes added, arguing that the ambitions of both government and industry could be "thwarted" by the new charge.
Market Share and Mandate Pressures
Despite the slowdown, battery electric vehicles have still captured a 22.7% market share over the first eleven months of the year. This puts pressure on manufacturers to meet the government's strict Zero-Emission Vehicle (ZEV) mandate.
The mandate requires that at least 28.0% of new cars sold by each manufacturer in the UK in 2025 must be zero-emission, which predominantly means pure electric models. However, analysis from green consultancy New Automotive suggests the effective target for 2025, after accounting for flexibilities, is closer to 21.7%.
The combination of slowing consumer demand, an impending new tax, and stringent sales targets presents a complex challenge for the UK's transition to electric mobility. Industry observers will be watching closely to see if this slowdown is a temporary blip or the start of a more concerning trend.
