Car sales boomed in June – and loads of Brits went electric

July 04, 2025 by

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June was a big month for UK car sales, with electric cars making up one in every four cars bought. But are they affordable enough for most of us?

UK car sales jumped 6.7% in June, the biggest June since before the pandemic. A total of 191,316 new cars hit the roads last month, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

What’s driving the surge? Fleets such as rental companies and businesses are still leading the charge, but private buyers are making a comeback too, with nearly 72,000 of us going car shopping last month.

Remember, you can buy a brand new or used car right here on Carwow. And you can also sell your carto make way for an electric car, too. We’re here to help you through every step of your car-changing journey.

EVs are really taking off

The big story? Electric cars are definitely gaining ground. Almost one in four new cars sold in June was a battery electric vehicle (BEV), rising 39.1% to 47,354 units – that’s a big jump from last year. Plug-in hybrids (PHEV) are also growing in popularity, increasing 28.8% to 21,382 units compared to last year, while petrol and diesel cars are mostly steady or declining, with sales of petrol cars dropping 4.2%.

Type 2025 2024 % change Market share ’25 Market share ’24
Diesel 10,716 10,696 0.2% 5.6% 6%
Petrol 88,029 91,874 -4.2% 46% 51.3%
BEV 47,354 34,034 39.1% 24.8% 19%
PHEV 21,282 16,604 28.8% 11.2% 9.3%
HEV 23,835 26,055 -8.5% 12.5% 14.5%
Total 191,316 179,263 6.7%

If you’re thinking about switching to electric, you’re definitely in good company. But there’s a catch…

They’re still too pricey for many

Despite record numbers, electric car sales are still falling short of the UK government’s targets. Why? Price is a big factor. Manufacturers have had to fork out more than £6.5bn in discounts just to get EVs into driveways. That won’t be sustainable forever.

To make matters worse, the government’s Expensive Car Supplement (ECS) – originally meant for luxury gas guzzlers – now hits many EVs too, even though they’re greener. That’s costing electric car buyers an estimated £360m this year alone.

What needs to change?

SMMT says more government support is urgently needed – not just for manufacturers, but for you as a consumer. Here’s what they’re pushing for:

  • Scrap unfair taxes such as the ECS for electric cars
  • Cut VAT on electric cars to make them more affordable
  • Lower the cost of public charging so you save at the plug

Experts at SMMT say if these changes are made for just three years, it could get an extra 267,000 electric cars on the road. That means slashing CO2 emissions by six million tonnes a year.

Carwow has also outlined actions the government should take to support motorists in our ‘The Future of Motoring Manifesto,’ many of which focus on electric car incentives.

  1. Reduce VAT to 5% on all EV charging
  2. Improve personal safety at charging points
  3. Fund home-based charging points
  4. Invest in improving EV infrastructure
  5. Introduce grants for new and used EVs
  6. Help public building car parks add charging
  7. Make EV insurance costs more affordable
  8. Bring transparency to clean air zones
  9. Introduce national try an EV day
  10. Compulsory charging points at major retail sites

June’s car sales show electric cars are definitely catching on, but without more help, the UK’s move to greener driving might slow down. So if you’ve been unsure about switching to electric, now could be a good time to take one out for a test drive before prices start creeping up.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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