The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show a mixed picture for the UK automotive market. New car registrations fell by 5.0% in July, marking the weakest performance for the month since 2022. Yet beneath the headline decline lies a story of transition, opportunity, and the growing momentum behind sustainable mobility.
Electric vehicles: growth with gaps
Battery Electric Vehicle (BEV) registrations rose by 9.1% year-on-year, now accounting for 21.3% of the market. Plug-in hybrids (PHEVs) surged even more impressively, up 33.0%. However, this growth still falls short of the 28% Zero Emission Vehicle (ZEV) Mandate target for 2025.
The newly launched Electric Car Grant (ECG) - offering up to £3,750 for eligible models - has been welcomed by the industry. But delays in confirming which models qualify have caused some buyers to pause, impacting July’s performance. For manufacturers and dealers, this highlights the importance of clear communication and agile marketing strategies to maintain consumer confidence.
Challenges in charging and infrastructure
Despite fiscal incentives, the EV transition is being slowed by infrastructure gaps. Many regions still lack adequate charging stations, and the upfront cost of BEVs remains a barrier for many consumers. The government has pledged funding to improve infrastructure, but industry voices are calling for faster approvals, broader grant eligibility and deeper investment to truly accelerate adoption.
What this means for automotive businesses
For our clients in the automotive sector, these trends underscore the need to:
- adapt product portfolios to meet rising demand for low-emission vehicles
- engage proactively with grant schemes and ensure customers understand their options
- invest in digital tools and data to track consumer sentiment and respond to market shifts
- collaborate across the supply chain to support infrastructure development and policy advocacy.
Sustainability as strategy
At UHY, we believe sustainability is not just a compliance issue - it’s a strategic imperative. Whether you're a dealership, manufacturer or supplier, embedding ESG principles into your operations can unlock long-term value and position your business for future growth.
We’re here to help you navigate this transition with confidence. Our sustainable business services team is ready to support your journey toward a greener, more resilient automotive future.
