The UK's new car market expanded by 11.7% in July compared with the same month last year, according to new figures. A total of 156,571 new cars were registered last month, as reported by the Society of Motor Manufacturers and Traders (SMMT). This represents the best July performance since 2019.
Eighth month of growth
The SMMT highlighted that this uplift marks the eighth consecutive month of year-on-year growth. The increase in registrations was primarily driven by the strong uptake of electrified vehicles.
Surge in electric vehicle registrations
Registrations of pure battery electric new cars surged by 44.5% compared with July 2025, a period when demand was subdued ahead of incoming grants. This growth was attributed to a wide choice of models, government purchase incentives, and heavy discounting by manufacturers.
Industry concerns
SMMT chief executive Mike Hawes commented: “July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility.”
However, he warned that this progress cannot be sustained if manufacturers continue to lose billions on EV discounts, which distort demand to avoid even steeper penalties. He stressed that the sector's commitment to decarbonisation is not in doubt, but its ability to remain viable and attract investment for an EV future is under intense pressure. Hawes called for urgent reform of the regulation, warning that otherwise Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.
