08 September 2025
The UK saw another month of new-car registration declines in August. But have the country’s EV incentives started to make an impact in battery-electric vehicle (BEV) deliveries? Autovista24 special content editor Phil Curry explores the figures.
The UK’s new-car market continued to struggle in August, as the country’s difficult year for deliveries continued. According to data from the SMMT, a total of 82,908 new passenger cars were registered in the month, 2% down year on year.
Alongside February, August is traditionally one of the UK’s lowest-volume months, as buyers wait for the ‘plate change’ in September. Compared with August 2024, last month saw a decline of 1,667 models.
Fleet uptake dominated the month, making up 59.1% of all new cars taking to the road. This was despite a 4.6% reduction in volumes. Interest from private buyers grew by just 0.7%, to account for 39% of registrations. Meanwhile, the business sector improved by 41.6%, although this equated to fewer than 500 additional units and a 1.9% share.
Across the first eight months of the year, the UK market was up by 2.1%, with 1,265,281 units delivered. This position was thanks to a strong performance in March, the first plate-change of 2025. Should September provide a similar boost, the country could end the year with a registration improvement, barring any serious declines.
BEVs continue their upward trend
Registrations of BEVs improved by 14.9%, with 21,969 new models taking to the country’s roads. This was, however, the third-lowest improvement of the year, highlighting the momentum the technology built up in the first quarter.
Yet the 26.5% market share achieved is the highest seen in 2025 so far. It was even the fourth-highest share on record, according to the SMMT. This forms a trend with 2023 and 2024, where low August volumes and high fleet uptake strengthened the BEV hold.
Across the first eight months of the year, BEV deliveries were up 29.5%. This was thanks to three consecutive months between January and March, when registrations improved by over 40%. In total, 276,635 all-electric models have taken to the roads, an increase of 63,091 units.
This gave BEVs a 21.9% market share, up 4.7pp year on year. However, this was some way below the 28% required by the country’s zero-emission vehicle (ZEV) mandate. With just four months of reporting left, the UK government’s incentive scheme has some heavy lifting to do.
The EV incentive conundrum
Following their introduction in July, August was the second month of registrations since the introduction of BEV incentives. The scheme sees a list price discount of £3,750 for band one vehicles, and £1,500 for second tier models.
However, the impact may not be realised until the new-plate month of September. Buyers could be waiting to collect their cars from dealerships or holding out for the announcement of more models qualifying.
There are currently 35 passenger cars, listed by the UK government, eligible for the grant. However, of these, 33 are available in band two, with a discount of £1,500.
This includes models from Volkswagen (VW) Group, Stellantis, Renault and Toyota. These are leading manufacturers, yet their environmental credentials have struggled to meet the strict requirements of the scheme.
Only two cars are available with the full £3,750 discount. These are both from Ford, the Puma Gen-E and the E-Tourneo Courier. While the next-generation Nissan Leaf is expected to qualify too, that is still a small number for the maximum discount.
Tighter incentive thresholds
The government has now tightened the scheme, restricting the model options available to qualify. Previously, the vehicle cost cap of £37,000 was aimed at base-trim models. This meant if the lowest-specification version was available at, or under, the threshold, all models in that range were eligible.
At the end of August, these rules were amended to place a £5,000 restriction on ranges. While the base model must still sell below £37,000 to qualify, any trim level over £42,000 will not be discounted.
This prevents carmakers from lowering base-model prices to qualify, while offering the rest of their range at full price. It also reduces the choice for customers, with many BEVs still expensive.
When the scheme was announced, many manufacturers announced plans to discount their models. This was either while waiting for BEVs to be included in the scheme or due to ineligibility, ensuring continued competitiveness.
However, this is adding to the total of £16.5 billion worth of discounting seen in the first 18 months of the ZEV mandate. This was a figure highlighted by SMMT chief executive Mike Hawes at the International Automotive Summit in June.
Commenting on the latest numbers, Hawes stated: ‘There is still substantial ground to make up to reach the mandated targets. So, September, which is typically the second busiest month of the year, will be pivotal.
‘Manufacturers have put immense investment and innovation into the transition, with more than 140 car models available in the UK as zero emission, while at the same time offering unprecedented and unsustainable discounts to accelerate demand,’ he added.
PHEVs on the up
In terms of improvement in August, the best powertrain performance came in the plug-in hybrid (PHEV) market. Deliveries were up 69.4%, with 9,803 units finding their way to customers. This was a rise of 4,017 models compared to the same point last year.
PHEVs took an 11.8% market share, up 5pp against August 2024. This meant it achieved a greater share than full hybrids (HEVs), making it the UK’s third-biggest-selling powertrain technology.
Between January and August, PHEVs saw registrations improve 33.7%. This kept the powertrain as the best-performing in terms of volume increase, a position it took from BEVs in July. Its 10.6% market share in the eight-month period was up 2.5pp.
Combining BEVs and PHEVs, the electric vehicle (EV) market grew 27.6% in August, with 31,772 new models taking to the roads. This gave the plug-in sector a 38.3% share, up from 29.4% a year prior.
Meanwhile, in the year-to-date figures, EVs were up 32.5%, an improvement of 7.2pp on the same period last year. This is the highest the share has been, and is approaching a third of the market.
Hybrids struggling
For the first time this year, HEVs have fallen to the fourth-most-popular powertrain in a month. During August, 9,456 full-hybrids were registered, a drop of 13.9%, equating to 1,521 fewer models.
This was the third consecutive negative month for the technology, with its market share falling to 11.4%, from 13% last year.
Over the first eight months of 2025, HEVs saw registrations increase by 5.1%, with 174,784 units delivered. This overall rise in volumes has dropped from a high of 18.7% in March, with four monthly declines since then. This means the technology’s market share sat at 13.8%, just 0.4pp up year on year.
Adding HEVs into the EV mix, electrified model deliveries increased by 14.9% in August, with 5,352 additional models taking to the country’s roads. This gave the technology mix a 49.7% market share, up 7.3pp.
This means electrified vehicles are close to becoming the dominant powertrain grouping in the UK. With the country mixing mild-hybrids into their respective internal-combustion engine (ICE) figures, this would be a significant development.
Is ICE dominance over?
The rise of electrified models comes at the expense of petrol and diesel, which continued their registration slide. 37,373 petrol-powered cars reached customers in August, a drop of 14.2%, or 6,161-units, year on year. This was the fuel type’s lowest volume of the year so far.
The poor performance left petrol with a market share of 45.1%. This was still the leading figure in the UK new-car market, but represented a drop of 6.4pp compared to August 2024.
Between January and August, petrol volumes fell by 10.3%, with their share down 6.7pp, to 48.1%. In total, 608,484 models were delivered to customers.
Meanwhile, diesel also saw its lowest registration volume of 2025, with 4,307 units taking to UK roads in August. This was a drop of 16.6%. The figure meant a market hold of just 5.2%, down 0.9pp.
In the first eight months of the year, diesel saw volumes decline by 11.3%, with 71,047 registrations. This equates to a 5.6% market share, down 0.9pp.
Combining petrol and diesel, the ICE market fell 14.4% in August, with 7,019 fewer units delivered. The sector maintained its dominant position, but only just, with a 50.3% market share. This was down from 57.6% recorded in the same period last year.
Meanwhile, in the year-to-date, ICE registrations were down by 10.4%, as volumes dipped by 79,063 units. Their 53.7% share of total registrations fell by 7.5pp. This means the gap between ICE and electrified continues to close as the year draws towards its end.
