Certainty needed to fully charge EV demand

SMMT data shows used car market is surging, but new car demand has stalled, highlighting the need for clear policy

Certainty needed to fully charge EV demand
Photo: Bigstock

Latest data from the SMMT reveals a split in the UK’s automotive market. On one hand, the used car market is thriving, with four million transactions in the first half of the year, returning to pre-pandemic levels.

The data shows that one in ten of these used cars was electrified, with zero-emission vehicles (ZEVs) reaching a record 3.4% share, demonstrating that consumer demand follows affordability and choice.

Conversely, new car demand has stalled, with July 2025 recording its weakest figures since 2022 and more moderate growth for ZEVs. The SMMT attributes this to the market’s sensitivity to external factors, particularly the delay between the announcement of the Electric Car Grant (ECG) and the release of details on which models qualify, which has caused a pause in purchasing decisions.

Despite this short-term softening, the outlook remains optimistic. Year-to-date, the new car market is still up, with over a quarter of a million electric cars registered. The market forecast for 2025 has been revised upwards to 1.986 million units. However, the anticipated ZEV market share of 23.8% is still short of the 28% target, underscoring the importance of a rapid rollout of the grant.

The light commercial vehicle (LCV) sector, where the plug-in van grant has been extended, demonstrates the effectiveness of such incentives. This sector has seen an eighth consecutive month of growth in electric van uptake, although its ZEV share is still below the mandated 16%.

The SMMT concludes that to fully realise the UK’s zero-emission ambitions, it is essential to deliver certainty to both consumers and businesses through clear fiscal policies and investment in charging infrastructure.

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