UK New Car Sales In June Increased By 11.4% Year-On-Year, Reaching The Highest Level For The Same Period Since 2019

According to the latest industry data released by the UK’s Society of Motor Manufacturers and Traders (SMMT) on July 6, new car registrations in the UK rose 11.4% year-on-year in June to 213,166 units, marking the best performance for the month since 2019. With consumer demand increasing and a wider range of models available, the market share of battery electric vehicles reached a new high, accounting for 30% of total sales, a figure consistent with data previously released by industry body New Automotive.

The turmoil in Iran has driven up fuel prices, while increased availability of affordable electric vehicle models, government subsidies, and automakers’ price cuts and promotions have together boosted EV sales. However, the current growth rate of electric vehicles is still insufficient to meet the level required for the UK to achieve its carbon neutrality goals.

Image source: SMMT

As of June this year, cumulative sales of pure electric vehicles in the UK accounted for only 25%, while the UK government's annual target is 33%. The Society of Motor Manufacturers and Traders said that to meet the target, the share of pure electric vehicle registrations in the remaining months of 2026 would need to exceed 40%.

Major automakers are making every effort to meet the UK's annual electric vehicle promotion targets, but they also warn that mandatory targets are forcing the industry to significantly lower prices, while compliance costs remain high. Additionally, the European Union will implement stricter automotive trade regulations in 2027, which is expected to further increase the operational pressure on UK automakers.

The Society of Motor Manufacturers and Traders (SMMT) in the UK stated: "High and unsustainable compliance costs are undermining the competitiveness of the UK's automotive production and sales sectors. As the appeal of overseas markets with relaxed regulations continues to grow, the UK’s domestic automotive industry faces the risk of losing investment."

It is worth noting that data released recently by industry body New Automotive showed that new car sales in the UK rose by about 15% year on year in June. The discrepancy between the figures from the two organizations stems from differences in statistical scope and calculation methods.