UK Electric Car Sales Hit Record High in September Amid New Government Subsidies

UK Electric Car Sales Surge to Record High in September 2025

The UK's electric vehicle (EV) market experienced a significant boost in September 2025, with sales reaching record highs. According to the Society of Motor Manufacturers and Traders (SMMT), registrations of pure battery electric vehicles (BEVs) grew substantially, driven by government incentives, manufacturer discounts, and a wider range of available models.

Government Grants Fuel EV Adoption

A key factor behind the surge in EV sales is the reintroduction of the government's electric car grant in July. This initiative, offering discounts of up to £3,750 on eligible vehicles, aimed to encourage more consumers to switch to electric cars. Heidi Alexander, the transport secretary, highlighted that the discounts have made EVs more affordable and accessible to a wider range of households.

The grant applies to a limited selection of cars, including models from brands like Citroën, Renault, Nissan, and Vauxhall. Restrictions on emissions during manufacturing effectively exclude many Chinese brands and vehicles exceeding a price limit of £37,000.

Sales Figures and Market Share

In September, sales of BEVs rose by nearly a third to approximately 72,800 units, according to preliminary figures from the SMMT. Plug-in hybrid sales also saw a substantial increase, jumping by 56% to 38,300. Overall, pure electric and hybrid cars accounted for more than half of all new car registrations in the UK for the month.

While the overall new car market grew by 14% compared to the previous year, reaching 312,900 registrations, sales remain below pre-pandemic levels due to ongoing cost of living pressures. The share of electric car sales for the year stands at 22.1%, below the 28% target set by the government's zero emission vehicle (ZEV) mandate.

Industry Perspectives and Future Outlook

Mike Hawes, chief executive of the SMMT, noted that electrified vehicles are "powering market growth" and that industry investment in EVs is "paying off." However, he also acknowledged that consumer demand still trails ambition. He believes the government's electric car grant will help overcome barriers to EV adoption.

Despite the positive momentum, concerns have been raised about the effectiveness and long-term sustainability of the grant scheme. Some analysts suggest that the scheme might need to close earlier than anticipated due to high demand. The government aims to phase out petrol and diesel car sales by 2030, necessitating continued efforts to encourage EV adoption through incentives and infrastructure development.