Battery-electric vehicles (BEVs) reached record market shares in both the UK passenger car and light commercial vehicle markets in July, as registrations continued to grow despite broader challenges facing the automotive industry.
Data released by the Society of Motor Manufacturers and Traders (SMMT) showed that BEV registrations increased by 44.5% year-on-year in the passenger car segment and by 74.1% in the van market. However, the industry body warned that electric vehicle adoption remains below the pace required to meet the UK’s Zero Emission Vehicle (ZEV) mandate.
Passenger Car Registrations Reach New High
The UK registered 156,571 new passenger cars in July, an increase of 11.7% compared with the same month last year.
Battery-electric vehicles accounted for much of that growth, with registrations rising 44.5% year-on-year to achieve a record market share of 27.5%.
The SMMT noted that July 2025 provided a relatively weak comparison because many buyers postponed purchases while awaiting confirmation of which models would qualify for the government’s Electric Car Grant (ECG).
Plug-in hybrid electric vehicle (PHEV) registrations also continued to grow, increasing 33.6% from a year earlier and lifting their market share to 14.9%.
Combined, BEVs and PHEVs represented 42.4% of all new passenger car registrations during the month.
The industry association attributed the continued growth in electric vehicle demand to a wider selection of available models, manufacturer incentives, government support and higher fuel prices.
Forecast Falls Short of ZEV Mandate
Despite the record monthly performance, the SMMT expects battery-electric vehicles to account for 27.4% of total new passenger car registrations in 2026.
While that represents an improvement from its previous forecast of 26.8% published in April, it remains below the UK’s ZEV mandate requirement of 33% for this year.
For 2027, the association forecasts a BEV market share of 32.1%, compared with the regulatory target of 38%.
The SMMT noted that its latest forecast was prepared before the government removed Electric Car Grant eligibility for demonstrator and courtesy vehicles in mid-July. Since those vehicles currently account for around 10% of all BEV registrations, the policy change could affect future market performance.
According to the association, manufacturers continue to rely heavily on discounts, promotional campaigns and government incentives to stimulate EV demand and comply with regulatory targets.
The organisation also warned that while regulatory flexibilities currently help manufacturers meet ZEV requirements, those mechanisms are expected to become less effective as annual sales targets increase, placing additional pressure on profitability and investment.
SMMT Chief Executive Mike Hawes said the industry’s investment in electric mobility had produced encouraging results but warned that stronger consumer demand would be needed to sustain progress.
“July’s record EV performance is a great achievement, reflecting the industry’s huge investment in zero-emission mobility. But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties.”
Electric Van Market Continues to Expand
The UK’s electric van market also recorded strong growth during July.
Battery-electric van registrations increased 74.1% year-on-year, representing the strongest monthly growth since August 2025 and lifting BEVs to a record 14.7% share of the light commercial vehicle market.
During the first seven months of 2026, battery-electric vans accounted for 10.6% of all new van registrations, marking the first time the segment has exceeded the 10% threshold.
However, that remains significantly below the 24% market share required under the UK’s 2026 ZEV mandate for light commercial vehicles.
The SMMT expects electric vans to represent 11.5% of registrations this year before rising to 15.9% in 2027.
According to the association, adoption continues to be constrained by higher upfront purchase costs, limited charging infrastructure and growing operational pressures on commercial fleet operators.
Hawes said stronger policy support would be needed to accelerate fleet electrification.
“Continued van market growth shows operator resilience and sustained sector investment, while record battery electric van uptake is encouraging, proving businesses will switch if business conditions are right. However, multiple barriers are constraining the market – high capital expenditure costs, infrastructure challenges and, for pick-ups, fiscal disincentives. Rapid revisions to regulation and taxation are required urgently to spur the commercial vehicle fleet renewal essential to the achievement of net zero.”