BEVs Take 30% of the New Car Market

Electric vehicles made up nearly 30% of all new car registrations in August, marking the strongest August on record. Registrations increased by 30% compared to last year, and the year-to-date market remains comfortably ahead of the pace required by the ZEV Mandate.

This result means the surplus of ZEV credits across the market continues to grow. Manufacturers collectively need battery electric vehicles to account for an estimated 24.6% of sales to comply with the mandate, once various flexibilities are considered. The actual year-to-date figure now stands at 25.5%.

However, August also highlights a challenge with these flexibilities. Plug-in hybrid vehicles were the fastest growing fuel type, with registrations up 44% on last year. This growth is partly driven by a system that allows manufacturers to generate additional ZEV credits through the sale of plug-in hybrids, even though their real-world emissions are typically much higher than those of battery electric vehicles.

Almost one in three new cars sold were electric. Battery electric vehicles accounted for 29.7% of the new car market in August, with 27,876 registrations. This represents a 30% increase compared to the same month last year. Year-to-date, battery electric vehicle registrations are up 24%, continuing to capture a larger share of the growing new car market.

The ZEV Mandate surplus continues to expand. The market remains ahead of the ZEV Mandate's effective compliance trajectory. While the headline target for 2026 is 33%, flexibilities around CO₂ emissions mean the real market-wide target is currently estimated at 24.6%. With battery electric vehicles making up 25.5% of registrations so far this year, there are now more ZEV credits in the system than are needed for compliance.

Kia led the monthly rankings for battery electric vehicle registrations for the second month in a row, achieving its highest ever electric share, with 45% of its August registrations being fully electric. BMW also reached a new high, with battery electric vehicles accounting for 40% of its registrations, while Toyota, Volvo, and Suzuki all recorded their highest proportion of battery electric vehicle sales to date.