By WhichEV
The United Kingdom’s new car market hit a speed bump in July, with overall registrations falling by 5.0% after two consecutive months of growth.
In a market grappling with economic headwinds and policy uncertainty, 140,154 new cars were registered, the weakest performance for the month since 2022 and a significant 10.8% below pre-pandemic levels seen in 2019.
For the electric vehicle (EV) sector, the story was one of mixed fortunes. While battery electric vehicle (BEV) registrations continued to grow, the pace has moderated significantly. BEV sales increased by 9.1% in July, a stark contrast to the blistering 34.6% growth witnessed across the first half of 2025. This slowdown saw BEVs capture a 21.3% market share for the month, up from 18.5% in July last year, but still falling short of the 28% trajectory required by the government’s demanding ZEV Mandate.
Industry experts point to one major factor for the cooling demand: buyer hesitation surrounding the newly announced Electric Car Grant (ECG). According to the Society of Motor Manufacturers and Traders (SMMT), the lack of clarity on which specific models will qualify for the discount, worth up to £3,750, has caused many potential buyers to postpone their purchases.
Head on over to WhichEV for the analysis.
Photo by Austin Ramsey on Unsplash
