ALMOST one in four new cars sold in the UK in 2025 was powered by electricity, according to the latest figures from the Society of Motor Manufacturers and Traders.

Some 473,348 new battery electric vehicles were registered during 2025 - more than in the whole of 2021 and 2022 combined - and makes Britain the second biggest EV market in Europe by volume.

The BEV market share rose to reach 23.4 per cent last year - a strong uplift, but with a mandate target of 28 per cent the gap between demand and ambition is increasing rather than diminishing, said the SMMT.

Overall, the UK new car market grew for the third year in a row in 2025, breaching the two million mark for the first time since the pandemic, with 2,020,520 new car registrations.

Uptake for electric vehicles in December rose by 3.9 per cent to 146,249 units, with a final flourish in the private buyer market, up by 16.0 per cent.

Repeating a pattern seen in previous years,battery electric vehicle registrations took a high market share in the final month of the year, accounting for 32.2 per cent of the market - the only time the ZEV mandate target of 28 per cent was exceeded in 2025.

As a result, last year's market rose by 3.5 per cent, with growth across all buyer types.

Demand from private buyers recovered slightly from 2024 - when uptake fell below levels last seen during 2020 - with a 4.5 per cent increase to 779,587 units, but still only comprising 38.6 per cent of registrations.

Electrified vehicles narrowly missed becoming the majority of the market despite a surge during the last quarter.

Hybrid electric vehicle volumes rose by 7.2 per cent to achieve a 13.9 per cent market share, while plug-in hybrids were the fastest growing powertrain, with volumes increasing 34.7 per cent to take 11.1 per cent of registrations.

Massive manufacturer investment now provides a choice of more than 160 BEV models - up from just over 130 at the start of 2025 - with at least 60 more due in 2026.

However, EV uptake has risen by only 23.9 per cent.

The long-awaited return of a grant for EV purchase has helped, although only around a quarter of models are currently eligible for the incentive at any level.

It is manufacturers, therefore, that continue to shoulder the burden of driving up demand, subsidising their sale by more than £5 billion in 2025, equivalent to a massive £11,000 per BEV registered.

The announcement of a new ‘eVED' tax on EVs purchased from 2028 sends a confusing message to consumers, undermining rather than encouraging market confidence, said the SMMT.

While average new car CO2has fallen by 10.1 per cent from 2024 to 91.8 g/km, which will assist some manufacturers with mandate compliance, the UK's zero emission sales target will next year require BEVs comprise one in three new car registrations.

The UK already has the most ambitious transition trajectory of any major market and, with the EU's proposal to revise its end of sale date from 2035, divergence between the UK and the much larger market on its own doorstep is broadening.

The SMMT said action was now needed from the government to ensure the British market remains attractive for investment, and one which supports consumers, the industry and the economy.

The forthcoming review of the ZEV Mandate will be a crucial opportunity to ensure the transition supports the UK's international competitiveness and prosperity, as well as its shared decarbonisation goals.

Mike Hawes, SMMT chief executive,said: "The new car market finally reaching two million registrations for the first time this decade is a reasonably solid result amid tough economic and geopolitical headwinds. Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high.

"Government has stepped in with the Electric Car Grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals.

"Given developments abroad, government should bring forward its review and act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition."

The top sellers in 2025 were the Ford Puma which sold 55,488 units in the year followed by the Kia Sportage on 47,788 and the Nissan Qashqai on 41,141.

In the BEV zone the Tesla Model Y came out on top with 24,298 sales in the year with the Tesla Model 3 in second place with 21,188 and the Audi Q4 e-tron on 14,433.