Plug-in Truck Grant scores extra £18m cash for 2025/26 – Fleet World
Maria Bengtsson, EY UK & Ireland mobility leader, comments on the SMMT new car registration figures for 2025, which rebounded in December as the impact of pre-Budget uncertainty faded.
Maria Bengtsson, mobility leader, EY UK & Ireland
“Following a modest fall in November amid uncertainty ahead of the Autumn Budget and consumer confidence challenges, new car sales returned to growth in December, with a 3.9% year-on-year rise to 146,249 units. December’s increase sealed a year of modest yet encouraging growth for UK new car registrations in 2025, with 3.5% year-on-year growth, testament to the resilience of the automotive sector given the range of complex economic headwinds and broader challenges the industry has faced in recent times.
“Overall, Battery Electric Vehicle (BEV) registrations saw 23.9% year-on-year growth in 2025, underscoring the significant progress of the UK’s EV transition over the last 12 months. BEV market share in December reached 32.2%, however BEV market share across the whole of 2025 (23.4%) was still some way below the 28% Zero Emissions Vehicle (ZEV) Mandate target, which shows there is still work to be done if future targets are to be met.
“The greenshoots for the UK’s EV transition should not be downplayed, particularly given the recent additional support and funding announced in the Autumn Budget, which could help to accelerate growth in 2026. However, the latest EY Mobility Consumer Index revealed that an increasing number of car buyers are looking towards petrol and diesel vehicles for their next purchase, and there are still consumer concerns around upfront EV purchase costs, limited range and expensive battery replacement. The survey was conducted before the Autumn Budget so some of this downbeat sentiment may since have subsided, but the insights highlight the challenges of encouraging mass market EV adoption.
“Whilst findings of the latest UK Mobility Consumer Index were surprising, particularly given that both Plug-in Hybrid Electric Vehicle (PHEV) and Hybrid sales both saw growth in 2025 (11.1% and 13.9% year-on-year upticks respectively), they do reveal that official industry figures don’t always reflect the full story around consumer attitudes. Communicating the benefits and advantages to consumers of making the switch to an EV, as well as improving perceptions around the experience of owning an EV, will be crucial going forward.”
Bengtsson added: “After falling back in November, retail sales returned to growth in December, with a significant 16% year-on-year uptick. Stimulating retail sales growth will be a pivotal challenge for automakers in 2026 given that the UK economy’s growth prospects and consumer confidence continue to appear relatively subdued. In contrast, fleet sales saw a modest year-on-year decline in December, with a 2.4% fall. However, both retail (4.5%) and fleet (2.6%) sales rose year-on-year across the course of 2025, providing crucial support to the UK’s automotive industry.”
Further industry reaction…
Delvin Lane, CEO of InstaVolt: “Nearly half a million electric cars joined UK roads in 2025, with December showing what’s possible when confidence, choice and infrastructure align. The priority now is keeping the charging network ahead of demand. That’s why InstaVolt is investing at scale in reliable, high-power charging nationwide, with more than 3,000 chargers live or in construction, and over 500 delivered in the past year alone.”
John Lewis, CEO of char.gy: “One in four new car sales being electric in 2025 shows how mainstream electric vehicles have become. But to go the extra mile and reach the ZEV mandate target, we need to improve charging access in everyday communities. That’s why local authority-led rollout, supported by LEVI funding, is so critical. We’re already seeing the impact on the ground, with thousands of new on-street chargers being delivered street-by-street in towns and cities across the UK.”
Fiona Howarth, founder | director, Octopus Electric Vehicles: “2025 was another standout year for EV uptake. Falling battery costs, and a surge of affordable new models, means there’s now an EV for almost every driver. This momentum has been driven by the UK’s ZEV mandate, giving carmakers and investors the confidence to deliver more choice, more charging, and cleaner, more affordable driving for British drivers.”
Susan Wells, director of EV & Solar at Hive: “December’s figures round off what has been a landmark year for electric vehicle uptake, as a record numbers of drivers made the switch to more sustainable vehicles in 2025. As 2026 gets underway, the electric new car market is in strong shape. Consumer confidence appears to be growing, vehicle choice continues to expand, and work to drive down running costs is making EVs an increasingly attractive option for households and businesses alike. With the right policy environment, there is every reason to believe the coming year can build on this momentum.”
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte: “It is good to see new car sales topping two million again, but this still lags behind the 2.3 million figures seen before the pandemic. Despite positive growth in the electric vehicle market in the last year, albeit still behind the target, there is uncertainty amongst manufacturers regarding the regulation of EVs, and potential changes to the Zero Emission Vehicle target. Differing messages to consumers around affordability, and changes to EV legislation, will also play a part in more cautious adoption of plug-ins.”
Jon Lawes, managing director at Novuna Vehicle Solutions: “December’s registrations close out a mixed year for EV policy. Mandated targets are tightening, yet costs and complexity are rising, risking softening demand just when the market needs confidence heading into 2026.”
EYSociety of Motor Manufacturers and Traders (SMMT)
Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. 
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