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EV registrations rise by 44.5% in July – is this the Electric Car Grant effect?

ended 05. August 2026

Britain’s new car market grew 11.7% in July with 156,571 units registered, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The performance marks an eighth consecutive month of growth.

Growth was driven by electrified vehicle uptake, with plug-in hybrids up 33.6% to take a 14.9% share of the market, and hybrids up 11.6% to account for 13.2%. Electric cars (EVs) achieved another record volume for the month, up 44.5% to claim a 27.5% share.

The latest industry outlook now expects EVs to reach 27.4% of a 2.18 million-strong market by year end – up from a 26.8% share in April’s outlook but still far short of the 33% mandate target. 

Longer term, EV share is expected to rise to 32.1% in 2027 against a target of 38%. This is despite an ever-expanding number of brands and models, manufacturer subsidies, government incentives and an ongoing backdrop of high fuel prices. 

The Electric Car Grant, as well as 0% interest finance deals from new brands entering the UK, have opened up EVs to more buyers.

  • Is this the Electric Car Grant having an effect on the figures?
  • Do you have an EV? Why is it better than a petrol/diesel car?
  • How important is a strong car market for the UK economy?

Responses asap.

3 responses from the Newspage community

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Editor
Samuel Mather-HolgateVerified
Managing Director & IFA at Mather and Murray Financial
The grant may have helped at the margins, but the bigger force here is the cost of fuel. Drivers are not suddenly becoming policy wonks; they are looking at petrol and diesel prices and doing the maths. Once an EV fits the budget, the appeal is obvious: lower running costs, less exposure to volatile pump prices and a smoother everyday drive. The car market matters hugely to the UK economy because it touches manufacturing, retail, finance, insurance, maintenance and household confidence. Strong registrations suggest consumers are still willing to make big-ticket purchases, but the real test is whether EV demand can keep growing without relying on discounts and subsidies. For many households, this is less about a government grant and more about escaping the tyranny of the forecourt.
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Editor
Scott GallacherVerified
Director at Rowley Turton
I have a BMW i5 as a company car. It's a great car, but the main reason for me having an EV is the company car tax savings compared to a diesel or petrol car.
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Editor
Paul DenleyVerified
CEO at Oakham Wealth Management
The Electric Car Grant has likely helped, but it's only one factor. Cheaper finance, a wider choice of models and lower running costs are making EVs a more rational purchase, while affordability and charging access remain the biggest constraints.

EVs are quieter, cheaper to run and simpler to maintain than petrol or diesel cars, although for many drivers the trade-off is charging convenience and range on longer journeys.

A healthy car market matters because it supports manufacturing, dealerships, finance, insurance and thousands of skilled jobs. Car sales are also a useful barometer of household confidence and wider economic activity.