In September, British electric car sales reached a record high, with new taxpayer subsidies contributing to this rise during a crucial month for the market. Preliminary figures from the Society of Motor Manufacturers and Traders (SMMT) reveal that battery electric vehicle (BEV) sales increased nearly 30% compared to the same month last year, totaling 72,800 units.
The UK government reinstated an electric car grant in July, following significant lobbying from carmakers who cited challenges in meeting the zero emission vehicle (ZEV) mandate targets concerning electric sales. The grant appears to have facilitated an increase in the sale of pure electric vehicles in September. Additionally, sales of plug-in hybrids surged by 56% to 38,300 units, as carmakers shifted their focus to more profitable vehicles amidst increased competition, particularly from Chinese manufacturers.
The electric car grants, which can reach up to £3,750, apply to around 25% of battery vehicles currently available in the UK. This includes models from brands such as Citroën, Renault, Nissan, and Vauxhall. However, the grant conditions, including emission regulations and a price cap of £37,000, limit eligibility for many vehicles, excluding several Chinese brands.
In total, pure electric and hybrid vehicles made up over half of the market share in September, helping to raise overall car sales by 14% year-on-year to 312,900 units. This marked the strongest September since 2020, although the figures remain below pre-pandemic levels due to ongoing cost-of-living challenges.
The share of electric vehicle sales for the year stands at 22.1%, falling short of the 28% target under the ZEV mandate. The government has made provisions within the mandate more flexible, allowing carmakers to gain credits for reducing emissions from gasoline and diesel vehicles. New Automotive, a thinktank, suggests that the real sales target for battery cars might be lower than reported.
As interest in the electric car grant grows, concerns have emerged that it may need to be closed earlier than anticipated, as it is applicable only to the first 400,000 buyers.
Source: https://www.theguardian.com/business/2025/oct/04/uk-electric-car-sales-record-high-taxpayer-subsidies