The UK has reached a significant milestone in its transition to electric mobility, with battery-electric vehicle registrations surpassing 2 million for the first time. However, industry leaders are warning that mounting economic pressures could slow the pace of adoption in the months ahead.
According to the Society of Motor Manufacturers and Traders (SMMT), April 2026 saw the two millionth battery electric car registered since 2002. In 2025, 528,000 zero emission vehicles were registered for the first time, up 24% on 2024, including 473,000 zero emission cars.
Transport Secretary Heidi Alexander said: “Today, over two million EVs are now registered across the UK – a landmark moment in the UK’s transition to electric, backed by £7.5 billion in government funding.”
Strong April Growth Masks Underlying Concerns
The UK new car market grew by 24.0% to reach 149,247 registrations last month, according to the latest figures published by the SMMT, with the increase reflecting a rebound from an unusually weak April last year, when buyers pulled purchases forward to March to beat incoming vehicle tax increases. In April, 39,084 new battery electric cars were registered in the UK, 59.1% more than in April 2025, with BEVs accounting for 26.2% of new registrations.
Despite the positive headline figures, the SMMT has revised its expectations for electric vehicle uptake downwards. Battery-electric vehicles are now projected to achieve a 26.8% market share this year, down from an earlier forecast of 28.5%. Year to date, BEVs account for 23.1% of new car registrations, significantly short of the 33% share required under the UK’s Zero Emission Vehicle (ZEV) mandate.
Energy Prices and Global Uncertainty Threaten Progress
The SMMT has identified several factors that could dampen future demand for electric vehicles. The Iran conflict adds further uncertainty, the full impact of which is yet to be seen, with rising interest in EVs potentially tempered by concern over inflation, higher energy prices and the resultant negative impact on the cost of living.
The economic challenges facing the industry are stark. New SMMT analysis reveals battery costs are 30% higher than were previously expected, and energy prices have increased 80% since 2021. Manufacturers continue to shoulder the burden of driving up demand, subsidising EV sales by more than £5 billion in 2025, equivalent to a massive £11,000 per BEV registered.
The share of zero-emission vehicles in the 2026 sales forecast has been lowered to 26.8% from 28.5% earlier, as a boost to electric vehicle interest from higher fuel prices could be tempered by worries about inflation, energy costs, and pressure on household budgets, the SMMT said.
Industry Calls for Policy Review
Mike Hawes, Chief Executive of the SMMT, acknowledged the milestone whilst highlighting ongoing challenges. “Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate.”
The UK similarly needs an urgent review of the transition to avoid being put in an uncompetitive position, undermining consumer choice, investment and growth. The industry body argues that other major international markets are revising their transition plans to reflect geopolitical and market realities, and the UK should follow suit.
What This Means for Taxi and Private Hire Drivers
For taxi and private hire operators considering the switch to electric, the milestone demonstrates the growing maturity of the UK’s EV market. Massive manufacturer investment now provides a choice of more than 160 BEV models – up from just over 130 at the start of 2025 – with at least 60 more due in 2026.
However, operators should be aware that high energy costs and economic uncertainty may impact both vehicle pricing and running costs in the short term. The substantial manufacturer discounts currently available may not be sustainable indefinitely, suggesting that those considering the switch should weigh up their options carefully in the current market environment.
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