The new car market in the UK reported growth for the second month in a row in June, with registrations rising by 6.7% to 191,316 units, according to data from the Society of Motor Manufacturers and Traders (SMMT). 

According to the industry body, this marked the “best June since 2019”, increasing first-half performance 3.5% above the previous year, although still 17.9% below pre-Covid levels. 

Despite the positive performance, the market remains 14.4% lower than in 2019.  

The growth was mainly driven by fleet activity, which increased by 8.5% to 114,841 units.

Private retail demand grew by 5.9% to 71,616 units, accounting for 37.4% of new car registrations. Business registrations, however, fell by 15.8% to 4,859 units.

Petrol registrations declined by 4.2%, and diesel volumes remained flat at 0.2%, with their combined market share just over half at 51.6%.

Electrified vehicle registrations reached a 48.5% market share, with battery-electric vehicles (BEVs) jumping 39.1% to 47,354 units, representing 24.8% of the market.

Plug-in hybrid electric vehicles (PHEVs) grew by 28.8% to 21,382 units.

Hybrid electric vehicles (HEVs) saw an 8.5% decline, with 23,835 registrations.

SMMT CEO Mike Hawes said: “A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs. That EV growth, however, is still being driven by substantial industry support with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels.

“As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.”

In the first six months of 2025, BEV registrations rose by 34.6% to 224,841 units but still lag behind the 28% market share mandated for the year, despite £6.5bn in discounts over 18 months.

A recent survey for SMMT’s Automotive Business Leaders Barometer revealed that 55% of automotive CEOs believe the UK is behind schedule to meet the 2030 deadline for ending sales of combustion engine cars.

Challenges include a lack of governmental incentives and fiscal disincentives such as the VED Expensive Car Supplement, imposing a £360m effective fine on BEVs bought from April 2025. 

SMMT said that industry leaders stress the need for fiscal incentives to boost BEV demand and economic growth.  

Amending the newly applied VED Expensive Car Supplement (ECS) and reducing VAT on new BEVs and public charging could significantly increase demand, supporting a vibrant domestic market, the trade body said.

The SMMT added that implementing these measures for three years could add 267,000 BEVs to the roads, reducing CO₂ emissions by six million tonnes a year.