Private buyers drive June market as ZEV pressure grows

Staff
By Staff
6 Min Read

Private registrations rose 12.5% as the UK new car market recorded its strongest June since 2019, but the industry says EV demand still falls short of ZEV targets.

Private buyers helped drive the UK’s strongest June new car market since before the pandemic, with registrations rising 11.4% to 213,166 units as electric vehicles reached a record 30% market share.

Figures published by the Society of Motor Manufacturers and Traders (SMMT) show private registrations increased by 12.5% during June, ahead of fleet deliveries, which rose 10.5%, while business demand climbed 17.1%.

The overall market is now 9.2% ahead at the halfway point of 2026, marking continued recovery for UK car dealers as more buyers return to showrooms.

Battery electric vehicles (BEVs) achieved their highest monthly market share of the year at 30%, supported by quarter-end registrations, continued manufacturer incentives and a growing choice of models.

Plug-in hybrids accounted for 12.5% of registrations, while hybrids reached 14%, meaning more than half of all new cars registered during June were electrified.














Rank Model Year-to-date registrations
1 Ford Puma 29,642
2 Kia Sportage 25,828
3 Jaecoo 7 23,840
4 Nissan Qashqai 23,102
5 Vauxhall Corsa 18,470
6 Volkswagen Golf 17,552
7 MG HS 16,721
8 MINI Cooper 16,295
9 Volvo XC40 16,031
10 Tesla Model Y 15,341

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Retail demand still trails ZEV ambitions

Despite the strongest monthly EV performance of the year, the SMMT warned that retail demand remains well below the level required to meet the Government’s Zero Emission Vehicle (ZEV) mandate.

Battery electric vehicles account for 25% of registrations during the first half of the year, setting a new record but still falling well short of the 33% target manufacturers are expected to achieve in 2026.

To hit that target outright, electric vehicles would need to account for more than 40% of registrations during the second half of the year.

Around three quarters of buyers continue to choose petrol, diesel, hybrid or plug-in hybrid models.

The SMMT said mandate flexibilities are currently helping manufacturers remain compliant, but warned those mechanisms are becoming less effective as natural consumer demand fails to keep pace.

It added that manufacturers have now committed more than £12 billion in discounts and incentives to stimulate EV sales, but said the continuing cost of doing so is eroding profitability, weakening residual values and reducing investment capacity.

Government faces growing calls to review mandate

The figures come as pressure continues to build on ministers to revise the ZEV mandate following months of lobbying from across the automotive sector.

The SMMT, National Franchised Dealers Association (NFDA), manufacturers and dealer groups have all argued that annual EV sales targets no longer reflect the pace of retail demand, despite significant improvements in vehicle choice and charging infrastructure.

A growing number of MPs have also called on the Government to reconsider elements of the policy, with the industry warning that the cost of compliance is placing increasing financial pressure on manufacturers and their franchised dealer networks.

While the sector remains committed to the transition to zero emission vehicles, industry leaders have urged ministers to adjust annual targets and provide greater flexibility while consumer demand continues to develop.

The SMMT’s latest UK Automotive Business Leaders Barometer found every respondent believes the UK is behind the trajectory required to achieve the Government’s target of 80% battery electric vehicle sales by 2030.

Almost three quarters (73.8%) said the market is significantly behind.

SMMT holds firm on ZEV reform

Mike Hawes, SMMT chief executive, said: “June’s performance is very strong, showing EV uptake is growing, with battery electric cars reaching their highest market share this year and more than half of buyers choosing electrified models. But even these record levels are still not enough to meet mandated targets.

“Manufacturers are investing billions developing and bringing the vehicles to market – and spending billions more to sell them, yet the market is still not moving fast enough.

“Reforming the mandate now is essential not just to keep the transition on track but to protect the UK’s competitiveness, attract investment and safeguard jobs.”

The SMMT said the industry remains committed to decarbonising road transport but warned the current regulatory framework risks making the UK a less competitive market for vehicle investment unless changes are made.

Sue Robinson, chief executive, NFDASue Robinson, chief executive of the National Franchised Dealers Association (NFDA): “It’s encouraging to see another month of growth for the new car market, reflecting the industry’s efforts to support motorists and businesses looking to invest in new vehicles.

“Franchised dealers continue to listen to evolving consumer preferences and remain committed to providing customers with the information and support needed to make informed purchasing decisions; these figures are a positive sign for the sector.”

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