Electric car registrations jumped 14.9% in August compared with July as the Government’s electric car grant and heavy discounting from manufacturers tempted more buyers to take the plunge. The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show EVs grabbed a 26.5% market share, the highest so far in 2025 and the fourth best on record.
Hybrid registrations went the other way, dropping 13.9% to 9,456 cars and holding an 11.4% share. Fleets and businesses signed off 50,589 registrations, down 3.6% year on year, while private buyers nudged ahead by 0.7% to 32,319 cars. The growth in EVs and plug-in hybrids is in contrast to the overall trend – new car registrations slipped 2% to 82,908.
So far private car sales are up 3.8% at 485,969 cars. A total of 276,635 EVs have been registered this year, taking a 21.9% share – still short of the 28% target set by the Zero Emission Vehicle (ZEV) mandate.
Industry reaction to EV grant
SMMT Chief Executive Mike Hawes called the results encouraging: ‘August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.’
Paul Harrison, chief partnerships officer for leasing.com added: ‘August is traditionally a quieter month for the new car market with consumers enjoying their well-deserved summer holidays. Despite this, the EV discount schemes launched by manufacturers – and reductions offered by manufacturers on vehicles approved for the Government’s EV grant – really cut through the holiday season and turned the heads of motorists. The SMMT’s EV new car sales market share stood at 26.5% in August, whereas BEV demand via our comparison website exceeded that figure with a share of 34.9%.’
Others were far less impressed. Jon Lawes, Managing Director at Novuna Vehicle Solutions, said the rollout was badly handled: ‘While today’s figures show some positive momentum, the reality is we are still woefully behind ZEV mandate targets, and the mishandled electric car grant is creating more confusion than confidence among motorists.’
What this means for you
For anyone thinking of going electric, this is one of the first signs that the market is finally moving in buyers’ favour. Discounts are sharper, the Government is putting some cash back on the table, and the sheer choice of BEVs is better than ever.
That said, the new grant isn’t a magic wand. Only a couple of cars qualify for the full £3,750 discount, and the rules already feel confusing. The onus is on you to do the homework, double-check eligibility and make sure the deal stacks up.
The used market is also waking up. Leasing giants say enquiries are climbing, which should feed through into better supply and pricing for those who want an electric car without the showroom sticker shock.
Editor’s view: The market is finding its feet
This is proof, if proof were needed, that when EV prices come down, buyers respond. It’s heartening to see electric cars hit their highest share of the year, but let’s be clear – it’s happening because prices are finally moving in the right direction, not because of warm words or targets.
The problem is that the grant’ feels half-baked’s roll-out has been less-than stellar. The scheme’s top £3,750 discount only really helps a tiny handful of models is more like a headline than a policy.
If the government and carmakers are serious about getting more of us into EVs, they need to keep hammering prices down. Cut the confusion, widen the eligibility for the top-tier discount, and you’ll see buyers piling in. It really is that simple.
Keith Adams – Editor, Parkers
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