Electric vehicle registrations climb sharply as industry warns economic pressures could slow momentum
Electric vehicle sales in the UK recorded a significant rise in April, with battery electric vehicles (BEVs) making up more than a quarter of all new car registrations. However, the motor industry has warned that growing inflationary pressures and higher energy prices linked to the conflict involving Iran could weaken consumer confidence in the months ahead.
According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), new car registrations increased by 24% year on year in April, reaching 149,247 vehicles.
The strongest growth came from electric models, with BEV registrations jumping by 59.1% compared with the same period last year. The UK also passed a major milestone, with more than two million electric cars now registered on British roads.
Rising petrol costs driving interest in electric vehicles
The increase in EV demand mirrors trends seen across Europe since the outbreak of the Iran conflict, which has contributed to higher global oil prices and increased fuel costs for motorists.
With petrol prices remaining volatile, many drivers are turning to electric vehicles as a more economical long-term option, particularly as charging at home can still offer lower running costs than traditional fuel.
In April, electric cars accounted for 26.2% of all new vehicle sales in the UK. Despite the strong performance, the SMMT cautioned that economic uncertainty could still affect consumer appetite for EVs.
The organisation said concerns around inflation, household energy bills and wider cost-of-living pressures may “temper” demand, even as interest in electric vehicles continues to grow.
Tax changes and weaker comparisons boosted April figures
Industry analysts noted that part of April’s sharp increase reflects a relatively weak comparison with the same month last year.
In early 2025, many buyers brought purchases forward into March to avoid incoming changes to vehicle taxation. From 1 April last year, exemptions from vehicle excise duty for low- and zero-emission vehicles were removed.
At the same time, the expensive car supplement — often referred to as the luxury car tax — was extended to electric vehicles priced above £40,000. That added an annual £425 charge on top of the standard road tax rate.
The threshold was later revised to £50,000 and applied retrospectively, following criticism from manufacturers and consumers.
Electric vehicle targets still proving difficult to reach
Although EV sales have accelerated, battery electric vehicles have represented 23.1% of the market so far this year — still below the 33% target required under the government’s zero-emission vehicle mandate.
Manufacturers have introduced discounts and incentives in an attempt to stimulate demand, alongside the electric car grant launched last year. However, industry leaders argue that demand growth has not matched the pace originally expected when the mandate came into force in January 2024.
Fleet purchases led overall market growth in April, rising 26.8% to 90,462 registrations. Private consumer sales also increased strongly, up 20.2% to 56,116 vehicles, while registrations among smaller businesses rose 15%.
Demand for petrol cars continued to grow modestly, increasing 8.2%, while diesel registrations fell by 1%.
Hybrid and plug-in hybrid vehicles also gained ground. Plug-in hybrid sales rose 46.4%, accounting for 13.8% of the market, while hybrid electric vehicles increased 18.8% to take a 13.2% share.
Combined, electrified vehicles represented more than half of all new car sales for the second month this year.
Industry outlook revised despite improving market confidence
The SMMT said overall confidence in the new car market has improved, but expectations for EV adoption have softened slightly following a weaker-than-anticipated start to the year.
The organisation now forecasts total UK car sales to rise by 3.6% in 2026 to 2.093 million vehicles, higher than its January estimate of 2.048 million.
However, its projection for battery electric vehicles has been revised down from 28.5% to 26.8% of total sales this year.
Looking ahead to 2027, the SMMT expects total car sales to reach 2.1 million units, with BEVs accounting for around 32% of the market — still six percentage points below the official mandate target.
Industry warns costs could affect UK competitiveness
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the latest figures highlighted how sensitive the market remains to government policy and taxation changes.
He said: “April’s rebound is welcome, but underlines just how significantly fiscal changes can influence the market. Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate.”
Hawes also warned that rising compliance costs risk limiting consumer choice and could undermine the UK’s position as both a vehicle market and manufacturing hub.
His comments come shortly after new data from Auto Trader indicated that, for the first time in the UK, new battery electric cars had become cheaper on average than petrol models.
Pressure remains on the UK’s EV transition
While the rapid rise in electric vehicle registrations signals continued progress towards cleaner transport, challenges around affordability, charging costs and economic uncertainty remain significant.
For consumers, the shift towards EVs increasingly reflects both environmental concerns and financial considerations. But for manufacturers and policymakers, the pace of transition may still depend on how effectively market realities align with government targets in the years ahead.
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