New car sales hit 20-year high as electric vehicle share shrinks

New car sales in the UK surged to their highest February level in more than two decades, highlighting continued recovery in the automotive market. However, industry figures show the transition to electric vehicles is losing momentum, with the market share of fully electric cars falling for the second consecutive month.

According to data compiled by the Society of Motor Manufacturers and Traders (SMMT), more than 90,000 new vehicles were registered across Britain in February. The figure marks the strongest February performance since 2004, reflecting improved supply chains, pent-up consumer demand and stronger dealer incentives following several years of disruption across the automotive sector.

Despite the broader rebound in vehicle sales, the uptake of battery electric vehicles (BEVs) has shown signs of slowing. A total of 21,840 fully electric cars were registered during the month, representing a modest year-on-year increase of 2.8 per cent, equivalent to just 596 additional vehicles compared with February 2025.

However, because the wider market expanded more quickly than electric sales, the overall share of battery-powered vehicles fell to 24.2 per cent of new registrations, down from 25.3 per cent in the same month last year. The decline marks the second consecutive monthly fall in EV market share and raises questions about the pace of the UK’s transition away from petrol and diesel vehicles.

Industry leaders warn that current adoption rates remain significantly below the trajectory needed to meet the government’s long-term decarbonisation targets for the automotive sector.

The UK’s Zero Emission Vehicle mandate requires manufacturers to increase the proportion of zero-emission vehicles they sell each year, with a target of roughly one-third of new car sales being electric by the mid-2020s.

However, February’s 24.2 per cent EV share remains well short of the government’s 33 per cent benchmark, prompting calls from industry groups for ministers to reconsider elements of the policy framework.

Mike Hawes, chief executive of the SMMT, said the figures showed that while the car market was recovering strongly, the transition to electric mobility was progressing more slowly than expected.

“The UK’s new car market is continuing to recover and electric volumes are growing too, even if market share remains disappointing,” Hawes said.

He added that the gap between current demand and government targets suggested policymakers needed to reassess the design of the ZEV mandate and the broader incentives available to consumers.

Industry analysts say several factors continue to slow the pace of EV adoption, including higher upfront vehicle costs, concerns about charging infrastructure and uncertainty around long-term running costs.

Although battery prices have fallen in recent years, electric vehicles still typically carry a price premium compared with equivalent petrol models. For many households already under pressure from the cost-of-living crisis, that difference remains a major barrier to switching.

Charging infrastructure also remains unevenly distributed across the UK. While urban centres have seen rapid growth in public charging networks, drivers in rural areas and those without access to off-street parking often face practical challenges when considering an EV.

These issues are particularly acute for renters and residents of flats, who may struggle to install home charging points.

Supporters of the electric transition argue that government incentives and infrastructure investment are beginning to improve the landscape for drivers considering the move to electric mobility.

Hive director of EV and solar Susan Wells said February’s figures still represented a positive signal for long-term adoption.

“February’s new car registrations mark a strong start to the year for electric vehicle adoption, as more drivers embrace electric and the UK becomes increasingly geared towards sustainable travel,” she said.

She added that recent government decisions to expand EV charging grants could help address some of the barriers facing drivers.

“The government’s decision to increase EV chargepoint grants is a welcome step in the right direction, particularly for renters, flat owners and households without driveways who have faced real barriers to accessing home charging.”

Expanded investment in public charging infrastructure is also expected to play a role in boosting confidence among prospective EV buyers.

The overall strength of February’s new car registrations reflects broader recovery in the UK automotive market following several difficult years marked by pandemic disruption, semiconductor shortages and supply chain bottlenecks.

During 2020 and 2021, new vehicle registrations fell sharply as lockdowns disrupted dealerships and manufacturing output. Production constraints continued into 2022 and 2023 as the global semiconductor shortage restricted the number of vehicles manufacturers could deliver.

More stable supply chains in 2025 and early 2026 have helped the market regain momentum, allowing manufacturers to deliver long-delayed orders and increase showroom stock levels.

Discounting and promotional finance offers have also helped stimulate demand among buyers who delayed replacing vehicles during the previous downturn.

Despite the recent dip in EV market share, analysts broadly expect electric vehicles to continue expanding their presence in the UK car market over the coming years.

Automakers are investing billions of pounds into new electric models, while battery costs are expected to fall further as manufacturing scales up globally.

At the same time, the UK government plans to phase out sales of new petrol and diesel cars by the end of the decade, reinforcing the long-term shift toward zero-emission vehicles.

However, industry leaders say that without stronger consumer incentives, improved charging infrastructure and clearer policy support, the pace of adoption may struggle to keep up with regulatory targets.

For now, February’s figures highlight a paradox within the UK automotive sector: the car market itself is recovering strongly, but the transition to electric mobility remains slower than policymakers had hoped.

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New car sales hit 20-year high as electric vehicle share shrinks