New AutoMotive’s July report revealed that battery electric vehicles (BEVs) made up 27.4% of the UK’s new car market, with 43,500 registrations. This marks a 50% increase compared to July 2025 and represents the strongest July on record for BEV registrations.
Electric vans also experienced significant growth, with a 70% rise in registrations, capturing a 15% market share. This made July the third strongest month on record for electric van sales.
The overall new car market grew by 16%, a surge driven primarily by BEVs. In contrast, petrol and diesel car registrations continued to decline, falling by 8% and 11% respectively.
New AutoMotive attributed the increase in BEV registrations to the government’s ZEV Mandate, which requires manufacturers to meet annual sales quotas for zero-emission vehicles through a credits-based system. The 2026 target is set at 33% of sales, with an estimated real target of 24.6%.
The ZEV Mandate has come under renewed scrutiny following the appointment of Prime Minister Andy Burnham, who has announced plans to review the policy and consider lowering the targets.
Despite this, New AutoMotive found that manufacturers are exceeding the current Mandate requirements. July marked the second consecutive month where BEV sales surpassed the mandated trajectory, resulting in a surplus of credits and reducing compliance costs for manufacturers.
Ben Nelmes, executive director of New AutoMotive, noted that sales are now well above mandated levels, creating a healthy surplus of credits and making compliance more affordable for manufacturers who have not yet met their targets.
The report highlighted that credit distribution remains highly uneven, with a concentration among a small number of manufacturers. New AutoMotive suggested that the ZEV Mandate could be improved by rebalancing flexibilities around hybrids and credit trading to ensure incentives are shared more evenly while maintaining ambition.
Melanie Lane, CEO of EV charging provider Pod, emphasized that growing consumer and business demand is driving sales, and that clear communication of the long-term benefits of electric vehicles is essential to maintaining momentum and staying ahead of ZEV targets.
Unlike previous quarters, July 2026 did not see a Tesla delivery surge. Instead, Volkswagen, BYD, and Kia led the month’s BEV sales, with Kia achieving its highest BEV share to date at 41%. Renault also set a new record, with BEVs accounting for over half of its July sales, while Suzuki reached a record 41% BEV share.
Industry leaders responded positively to the report. Jamie Hamilton, Deloitte’s automotive partner and head of EVs, described the increase in new car registrations as extremely positive for manufacturers, reflecting strong customer confidence. He cautioned, however, that continued growth in EV adoption will depend on improvements in charging infrastructure and clear government policy on zero-emission targets.
.svg)
