UK car and van market shrinks in August as EVs hit record shares
UK new car registrations declined by -2.0% in August to 82,908 units, according to the Society of Motor Manufacturers and Traders (SMMT). Nevertheless, battery electric car registrations rose 14.9% to secure a 26.5% market share – the highest in 2025 and the fourth highest on record.
Plug-in hybrid vehicles grew 69.4% for an 11.8% share, while hybrid electric vehicles fell -13.9% to 11.4%. In the year to date, BEVs account for 21.9% of the car market, below the 28% target set under the zero-emission vehicle mandate.
The best-selling electric model was the Tesla Model Y, which ranked third in the overall sales statistics for August 2025. The Tesla Model 3 took the fourth spot. These are the only two electric models in the top ten for last month.
“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,” said Mike Hawes, SMMT Chief Executive. “There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric.”
The picture was similar for the light commercial vehicle market, contracted by -13.3% to 14,365 units in August. It marks the eighth consecutive monthly decline. Still, battery electric van registrations more than doubled (+109.5%) to 1,902 units, taking a record 13.0% share.
Year to date, BEVs comprise 9.1% of the LCV market, up 59.9% but still short of the 16% mandated level for 2025.
Hawes added, “A thriving market is also essential for decarbonisation, given the vast choice of electric van models already available to suit almost every need. Manufacturers need greater volumes to ensure investment in innovation continues unabated.”
The uptake in both markets is supported by government grants. For cars, there is now the Electric Car Grant, which offers subsidies of 3,750 or 1,500 pounds for certain makes and models. As carmakers actually need to apply for the grant and fulfil numerous environmental criteria, the list of subsidised cars keeps growing. We have compiled a list that we will continue to update.
In terms of vans, just last month, the government extended the plug-in van and truck grants until 2027. The scheme currently offers discounts of up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks. It is not yet clear what the grant levels will be for the 2026-2027 financial year.
According to the government, the extension will provide logistics firms and smaller operators with greater certainty regarding fleet planning. It follows the £30 million announced in July to fund more than 3,000 new depot charge points across the UK. Nevertheless, the SMMT warns that public and on-street charging, along with faster depot grid connections, remain essential to deliver the transition.
smmt.co.uk (cars), smmt.co.uk (vans)
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