Electric vehicle (EV) sales in the UK have experienced a significant upswing in early 2025, marking a robust start to the year despite evolving government policies and market challenges.
📈 Record-Breaking Sales Figures
According to the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicle (BEV) registrations in March 2025 hit 69,313 units — a 43.2% increase compared to March 2024. Year-to-date, BEV sales have risen by 42.6%, totalling 120,191 units and accounting for 20.7% of the UK’s new car market share.
Plug-in hybrid electric vehicles (PHEVs) also saw a strong rise, with March registrations up 37.9% year-on-year, hitting 33,815 units. The growing popularity of these vehicles reflects increasing consumer interest in electrified transport across the UK.
🌍 Global Context & Market Trends
The UK’s strong EV performance mirrors a broader global trend. In March 2025, electric and plug-in hybrid vehicle sales globally increased by 29% year-on-year to 1.7 million units. Europe played a significant role in this growth, with a 24% rise in EV sales driven by government incentives and stricter emissions regulations.
Manufacturers such as Volvo have benefited immensely. Volvo achieved its best-ever UK sales month in March 2025 with 11,898 vehicles sold — boosted by a balanced mix of BEVs, PHEVs, and mild hybrids.
🏛️ Policy Changes & Industry Response
While EV sales are up, the UK government has recently adjusted the zero-emission vehicle (ZEV) mandate. The ban on new petrol and diesel cars has been pushed from 2030 to 2035, and fines for manufacturers not hitting ZEV targets have been reduced by 20%.
Some in the industry, like Polestar UK’s boss Matt Galvin, are critical of this shift. They argue that relaxing rules sends mixed signals to the market and could slow down the transition to cleaner transport.
⚠️ Challenges Still Ahead
Despite momentum, challenges remain — particularly around private consumer uptake. Higher upfront vehicle costs, limited affordable options, and patchy public charging networks are major hurdles. Also, inconsistencies in taxation — such as higher VAT on public charging — are putting off potential buyers.
🔮 The Road Ahead
With BEVs and PHEVs continuing to make gains, the EV sector’s future in the UK looks promising. But to keep this pace, the government and industry need to work together to improve charging infrastructure, maintain strong incentives, and ensure the market remains accessible to everyday drivers.
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