Topic: Sustainability

Monthly gains for Italy’s new-car market were subdued by a longer-term downturn in September. Could growth in the electrified vehicle market bring hope? Autovista24 web editor James Roberts assesses the picture.

The Italian new-car market recorded growth in September, with 126,863 new vehicles registered. Aided by an additional working day, this marked a 4.2% year-on-year increase, amounting to a 5,095 unit uptick, according to the latest data from ANFIA.

This was the first positive result for the country’s market since April, albeit with the third-lowest monthly volume total of 2025.

Between January and September, the Italian new-car market remained down year on year. In total, 1,167,995 new vehicles were registered, equating to a 2.9% fall and a deficit of 34,488 units.

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Labelled by ANFIA as a ‘worrying’ month, the result continues a wider pattern of inertia, which has plagued the Italian new-car market. The year-to-date figures reveal little in terms of radical powertrain shifts, as underlined by Roberto Pietrantonio, president of industry body UNRAE.

‘The interruption of the negative trend, already predicted by UNRAE, is not a real sign of improvement,’ highlighted Pietrantonio, ‘but derives only from the comparison with an already very weak September 2024 and the effect of the calendar, which in 2025 has one more working day than last year. The market has been stagnating for some time and the month of September, compared to the pre-pandemic period, shows a loss of 14.6%, with 21,000 fewer units.’

Powerful PHEVs offset by blunt BEVs

Plug-in hybrid (PHEV) registrations stood out amid September’s powertrain performances. The technology enjoyed a year-on-year increase of 160.2%, with 10,670 of these vehicles taking to Italian roads. This new monthly record helped PHEVs claim an 8.4% market share, its highest so far in 2025.

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September saw BEV sales continue to underperform in Italy, despite recording the third-highest volume this year. 7,169 new all-electric vehicles left dealerships, a 11.6% increase compared with 12 months prior, and a 746-unit increase. In terms of market share, this equated to a meagre 0.4pp year-on-year increase.

Therefore, September’s PHEV volumes helped drive the overall plug-in vehicle market share to 14.1%, a 5.5 percentage point (pp) upswing from one year ago. However, the monthly PHEV success was overshadowed by the listless BEV trade.

The impact of PHEV and BEV sales on the wider market in the first nine months of the year was muted. BEVs accounted for 5.2%, while PHEVs made up 5.9%. Despite healthy year-on-year percentage point increases, the two powertrain variants made up the smallest slices of the Italian new-car market cake.

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In the same period, EV totals were jointly responsible for 11.1% of the Italian new-car market, with 129,926 units reaching customers. This proved a new high for 2025, plus a 3.8pp year-on-year improvement. However, industry bodies maintain the message that EV uptake remains well below the desired targets. 

This situation is echoed by repeated calls for new incentives to be clarified by the Italian government as soon as possible. UNRAE stated that: ‘the path towards the energy transition is still proceeding too slowly.’

Hybrids dominate Italian new-car market

Following a wider European trend, hybrids, made up of full and mild technologies, dominated the Italian new-car market in September.

Described by ANFIA as a ‘useful tool to promote decarbonisation,’ the powertrain commanded a 45.1% market share. In total, 57,243 hybrid vehicles took to the autostrade in September. This confirmed a 7.5% year-on-year increase of 3,991 units.

Across the first nine months of the year, the hybrid market share sat at 44.3%, 3.9pp up on 2024 figures. This share has fluctuated only 0.3pp since January. In total, 517,825 units were delivered, a 9.2% improvement.

New electrified heights

Combining plug-in and hybrid totals ensured another month of electrified registration dominance. In total, 75,082 electrified powertrains entered Italy’s car parc in September, a 17.7% year-on-year increase.

Aside from an incentive-boosted March and a low point in August, electrified registrations have remained consistent in 2025. September’s total of 75,082 provided both a solid return and ensured a new monthly market share high of 59.2%.

Removing PHEVs from the overall monthly numbers drops the share to 55.4%. This is closer in line with previous monthly shares and underlines the powertrain’s key role in September’s result.

Between January and September, 647,751 BEVs, PHEVs and hybrids were registered, up 15.2% year on year. The electrified market share stood at 55.5%, an 8.7pp improvement from 2024.

ICE new-car market holds on

The story of internal-combustion engine (ICE) decline continued in Italy. However, petrol witnessed its least severe year-on-year fall of 2025. The 29,044 registrations were down just 6.6%, compared with September 2024. The fuel type ended the month with the Italian new-car market’s second-highest market share of 22.9%, down 2.6pp.

Diesel endured its now customary double-digit decline. Just 11,309 new diesel and biodiesel vehicles took to Italy’s roads in September, down 27.5%, and 4,287 units year on year. This carved out a monthly market share of 8.9%, down 3.9pp.

Combined petrol and diesel totals hit 40,353 units in September. This returned a market share of 31.8%, the lowest of the year so far, and 6.5pp down year on year.

In the year to date, ICE models accounted for 35.4% of the Italian new-car market. This equated to a sizeable 8.3pp fall. In terms of units, a year-on-year deficit of 112,882 emerged.

Despite the apparent freefall of petrol and diesel registrations in 2025, a common issue remains. ICE vehicles continue to hold a relatively high market share, remaining well over 30%.

After eight months of the year, the ICE market share has reached a new low. However, the variation has only deviated 1.5pp from April’s high of 36.9%. Time will tell whether this decline will accelerate before the end of 2025, eroded by any incentive-spurred EV uptake.

Strong September for LPG

With 11,428 registrations in September, liquid-petroleum gas (LPG) remained a mainstay for consumers in Italy. These sales equated to a 1.1% year-on-year increase, and a not insignificant 9% market share, although this was down 0.3pp.

LPG is an important powertrain for the Italian new-car market. ANFIA highlights it as: ‘an important contribution towards the progressive decarbonisation of mobility.’ Across the first nine months of 2025, 107,234 LPG-powered vehicles rolled off forecourts, down 6.1% year-on-year. This ensured a 9.2% market share, falling 0.3pp year on year.

Electrified vehicles, including full hybrids (HEVs), plug-in hybrids (PHEVs), and battery-electric vehicles (BEVs) led UK registrations in September. But is this first likely to be a continuing trend? Autovista24 special content editor Phil Curry explores the data.

September saw the UK new-car market bounce back, inspired by the traditional ‘new-plate’ release. In total, 312,891 passenger cars were registered, an increase of 13.7% year on year.

The SMMT, which provides registration data in the UK, highlighted that this was the best September result since 2020.

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September also saw electrified vehicles overtake internal-combustion engine (ICE) models in terms of market share. This came despite a rare increase in petrol registrations, although not enough to see off this change in leadership.

March and September are traditionally the strongest months for registrations in the UK. September saw the ‘75’ plate released, helping boost deliveries. This helped propel the country’s year-to-date figures. In the first nine months of 2025, a total of 1,578,172 passenger cars took to UK roads, up 4.2% compared to the same period in 2024.

All market sectors drove growth, with the biggest increase recorded by fleets. These volumes rose 16.9% with 174,336 units delivered. Private consumer demand also increased, up 8.9% to 131,003 units. Business registrations improved 28.6% to reach 7,552 units.

Best ever for BEVs

BEVs saw their best-ever month in terms of volumes during September. In total, 72,779 all-electric models made it onto UK roads, a 29.1% increase year on year. This gave the zero-emission tailpipe technology a 23.3% share of total deliveries, up by 2.8 percentage points (pp).

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Although this market share was the fourth-highest of the year, it came during one of the country’s highest-volume months. The figure also beat the other new-plate period of March, showing the technology’s growth across the year. Yet the share is still lower than the 28% required by the zero-emission vehicle mandate for carmakers in 2025.

In the first three quarters of the year, BEV registrations were up 29.5%, with 349,414 deliveries. This equated to 22.1% of the market, a 4.3pp increase compared to the same period last year.

Electrified incentives make a mark

September was the first full month to see models available under the UK’s Electric Car Grant. This meant new BEVs could qualify for up to £3,750 (€4,318) based on a sustainability criteria.

The scheme was introduced in July 2025, with the first eligible models confirmed on 5 August. As of 6 October, 28 models qualify for the scheme.

However, only two of these, the Ford Puma Gen-E and Ford E-Tourneo Courier, are available with the full discount. Others, including models from Stellantis, Renault Group, Nissan and Volkswagen Group, are available with the lower £1,500 discount.

The SMMT highlighted that the eligible models make up around 25% of all available BEVs in the UK. Combined, these vehicles increased their registrations by 36% in September, compared to a 26.9% improvement for non-qualifying BEVs.

The Ford Puma was also the market leader in September, with 41,531 units delivered in the year to date. However, this includes the petrol variant of the model.

‘Electrified vehicles are powering market growth after a sluggish summer, and with record zero-emission vehicle uptake, massive industry investment is paying off, despite demand still trailing ambition,’ commented Mike Hawes, chief executive of the SMMT.

‘The Electric Car Grant will help to break down one of the barriers holding back more drivers from making the switch, and tackling remaining roadblocks, by unlocking infrastructure investment and driving down energy costs, will be crucial to the success of the industry and the environmental goals we share,’ he added.

Strong month for PHEVs

While BEVs enjoyed a record month in terms of volume, PHEVs also experienced a strong month. In total, 38,308 units were registered in September, a 56.4% improvement compared to the same month last year. This was the highest volume for PHEVs so far in 2025.

The result gave the powertrain a 12.2% share of the market, up from 8.9% recorded a year prior. This was, however, not enough to repeat its achievement in August, of being more popular than HEVs.

In the first nine months of the year, PHEVs saw 172,639 registrations, a 38.2% improvement. This means the technology continues to outpace BEVs in terms of growth. The plug-in technology held 10.9% of the market, up 2.6pp year on year.

As a result, in September, the electric vehicle (EV) market, made up of BEVs and PHEVs, grew by 37.4%. This meant 30,214 more EVs took to the UK’s roads. The technology accounted for 35.5% of the total registration volume in September, up 6.1pp.

Between January and September, EV deliveries were up by 32.2%, with 127,197 more units registered, equating to 522,053 cars. This means the technology held almost a third of the market, with a share of 33.1%, up by 7pp year on year.

HEVs also saw strong growth in September, although figures did not improve as much as those of BEVs and PHEVs. Still, 47,885 units were delivered in the month, up 23.5% compared to the same period last year. This gave the powertrain a 15.3% market share, up 1.2pp

In the first nine months of 2025, HEVs recorded 222,669 registrations, an 8.6% improvement. Their market share increased by 0.6pp, to 14.1% across 2025 so far.

Electrified dominance

Combining HEVs into the EV figures does reveal a change in market dominance. For the first time, electrified vehicles led the monthly figures. Increasing by 32.9%, 158,972 delivered units featured a major electric presence within their powertrain.

The SMMT reports the hybrid market differently from other major European markets. Rather than combining HEVs and mild hybrids (MHEVs) into one category, it splits them. MHEVs are then combined with their respective petrol or diesel categories.

This means that it has taken longer for electrified registration figures to overtake their ICE counterparts in the UK. However, September’s results show that for the first time, a majority of newly registered passenger cars can travel even a short distance on electric power only.

With declining ICE registrations and BEV and PHEV deliveries growing, electrified vehicles are likely to keep leading the market.

However, in the year-to-date figures, electrified models remained in second. The grouping accounted for 744,722 deliveries in the first nine months of the year, up 24.1%. This was an increase of 144,820 units. Their market share rose by 7.6pp compared to the same period last year, to 47.2%.

There was a difference of just 5,053 units between electrified and ICE registrations in September, in favour of electric-based models. Therefore, it may take time for ICE to be toppled in the year-to-date, with fossil-fuel power still 88,728 units ahead.

Not all bad for ICE

Despite losing their monthly dominance for the first time, it was not all bad news for the ICE market.

Petrol registrations grew 2.4% in the month, with 141,310 units delivered. This was the first time since March 2024 that the fuel type saw a monthly improvement. Petrol-powered models took a 45.2% market share, maintaining its place as the most popular single powertrain.

Yet, with improvements elsewhere in a diversifying market, this was 4.9pp down compared to September 2024.

Petrol struggled in the first nine months of the year. September’s performance may provide a respite, but the powertrain was still down 8.2% across the year, with 749,794 units delivered. This left the technology with a 47.5% market share, still leading in terms of individual powertrains, but down 6.4pp.

Diesel was the only powertrain to record a decline in September. In total, 12,609 units were registered, down 28.2% year on year. Market share also declined, by 2.4pp, to 4%.

Between January and September, diesel deliveries dropped 14.3% with 83,656 registrations. Its market share ended the period at 5.3%, down 1.1pp.

Combined ICE registrations dropped by 1.1% in the month, thanks to diesel’s poor performance. This equated to 1,661 fewer units delivered to customers and 153,919 in total. The technology lost its market-leading position with a total share of 49.2%, down 7.3pp.

However, ICE still controlled the market in the year to date, although registrations were down 8.8%, with 833,450 deliveries. This was a change of 80,724 units compared to the first nine months of 2024. The grouping’s market share of 52.8% was still dominant but marked a 7.6pp decline.

While other markets have struggled, Spain has seen new-car registrations soar so far in 2025. August continued this trend, thanks to another month of impressive electric vehicle (EV) growth. Autovista24 special content editor Phil Curry examines the data.

Spain has recorded 12 consecutive months of registration increases. The country saw 61,315 passenger cars delivered to customers in August, according to ANFAC. This was a 17.2% rise compared to the same month in 2024, equating to 8,993 more units.

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August 2024 was the last time Spain saw its registration figures decrease year on year. Since then, new-car deliveries have risen each month. Other large European markets have been less stable. This has put Spain ahead in terms of growth.

This was also reflected in the year-to-date figures. Between January and August, the country saw 769,488 new cars take to the road, an increase of 14.6%. This means 97,937 more units were delivered, suggesting that Spain will again break the one million registrations barrier in 2025.

EVs soar in critical month

August is traditionally a low-volume month in most markets, including Spain. This is due to summer holidays taking place, when buyers are focused more on leisure than new vehicles.

Spain’s impressive growth could be due to its poorer performance in August 2024. However, battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) each saw triple-digit growth for the fourth-consecutive month, rocketing the market forward.

Additionally, overall registrations by rental companies fell by 13.7%, with many already adding to their inventories for the summer. However, deliveries elsewhere picked up. Business registrations improved by 22%, while those to individuals grew 16.1% according to ANFAC.

‘The August market figures leave us with two important insights. On the one hand, the strong performance of the general passenger car market is already growing by almost 15%, allowing us to close this year above 1.1 million units. Although we are still far from pre-pandemic figures, it is worth noting that sales to individuals and businesses are driving the market,’ commented Félix García, communications and marketing director at ANFAC.

‘On the other hand, the electrified market in August accounted for a quarter of total sales. Both total sales and those of electric and plug-in hybrid vehicles are good news,’ he added. ‘They attest to the efforts brands are making to bring increasingly affordable electric models to the market to reach a greater number of citizens.’

Impressive EVs

BEV registrations saw growth of 160.9% in August, according to Autovista24 calculations. In total, 7,033 new all-electric models took to the country’s roads, 4,337 more than last year. This meant the powertrain took an 11.5% market share, jumping 6.3 percentage points (pp).

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Since the reintroduction of the MOVES III incentive scheme, BEV registrations have been consistently high. While struggling to match figures in other large European markets, Spain’s volumes have been ahead of Italy for some time.

This is a significant step for the market, which seems to be embracing electrification after years of struggles. BEV deliveries have seen triple-digit growth every month since May. This has helped in the year-to-date figures. In total, 61,960 all-electric models have been registered, up 95.7%. This gave the technology an 8.1% market share, up 3.4pp.

Meanwhile, PHEVs once again stood out in the figures in terms of volume growth. The powertrain saw 7,910 deliveries in August, up 162.8% compared to the same period last year. This equated to 4,900 more units taking to Spanish roads.

The result gave PHEVs a 12.9% market share, up 7.1pp. The result firmly cements the powertrain as Spain’s third-best-selling technology.

Between January and August, PHEV registrations have almost doubled, ending the period up by 99.9%, according to Autovista24 analysis. The 76,298-unit volume was up by 38,130 models, while the 9.9% share of the registrations total is a 4.2pp increase.

Challenges ahead for EVs?

The results mean that combined, the EV market leapt by 161.9% in August. Their 14,942-unit total was responsible for 24.4% of the market, jumping 13.5pp year on year.

This result allowed average emissions from passenger cars sold in the month to fall to 97.8g/km. This is 16.7% lower than the average emissions from new models sold in August 2024. It was also the first time the figure dropped below 100g/km in a month, according to ANFAC.

In the first eight months of the year, plug-in deliveries were up 98%, with their 18% market share an increase of 7.6pp. This highlights the impressive growth across 2025, where volumes have been up in either double or triple digits.

However, there are challenges to this growth ahead, especially when it comes to the allocation of funding for the country’s incentives programme.

‘These are very good figures that should lead to optimism, but not complacency,’ stated José López-Tafall, general manager of ANFAC. ‘The demand for electrified vehicles is already a reality that is being reflected month after month. Brands are already doing their part, with a major marketing effort aimed at customers.

‘But this effort must be complemented by a sufficient and efficient aid plan to continue encouraging their purchase. The reality of current demand and the fact that some regional governments have already announced the end of the allocated funds must be sufficient incentive to provide them with new funds and expedite their allocation through direct aid to customers. We must act immediately with effective measures to take advantage of the good momentum the electrified market is experiencing,’ he added.

Hybrids remain dominant

While the EV market carried so much momentum, hybrids, both full and mild technologies, continued to lead Spain’s new-car market.

In total, 25,470 new hybrid models took to the country’s roads in August, based on Autovista24 analysis. This was a 19.8% improvement year on year. This growth meant the powertrain took a 41.5% market share in the month, up just 0.9pp.

Across the first eight months of 2025, hybrid registrations improved by 29.4%, with 319,488 new units delivered. The market share of 41.5% marked an improvement of 4.7pp year on year.

Combining hybrids with EV figures, the electrified market saw registrations increase by 49.9% in August, with a dominant market share of 65.9%. This is a continuation of the market trend, which saw internal-combustion engine (ICE) vehicles lose their dominant position in monthly reporting in July 2024.

Between January and August, electrified registrations were up 44%. The technology’s market share reached 58.9%, up 12.1pp compared to the same period last year.

ICE trends continue

Following the market trend seen in the other big European markets, both petrol and diesel struggled again in August.

Petrol registrations were down 20.1%, with 14,421 models taking to Spanish roads in the month, according to Autovista24 calculations. This meant its 23.5% market share dropped below a quarter of total registrations for the first time. The figure was down 11pp year on year, highlighting the fuel-type’s struggles.

Across the first eight months of 2025, petrol registrations fell by 13.1%, with 230,853 deliveries. This represented 30% of total figures, down by 9.5pp.

Diesel also struggled in August, with a 32.8% drop in volume, albeit based on lower numbers. Just 3,268 units were delivered in the month, providing a 5.3% market share. This was a marked drop from the 9.3% achieved in August 2024.

This means diesel saw a decline of 37.6% between January and August. Just 42,750 units took to the country’s roads, while their share fell by 4.6pp, to 5.6%.

Combined, the ICE market dropped 22.8% in August, continuing a trend of declines in every month of 2025 so far. Only March saw a single-digit drop, with every other result in the double figures.

This meant the ICE market share fell by 14.9pp in August, to 28.9%. This means the technology is close to being overtaken by plug-in registrations alone, should their upward trajectory continue.

In the first eight months of the year, ICE model deliveries declined by 18.1% to 273,603 units. Their market share also fell, by 14.1pp to 35.6%.  

Germany’s new-car market enjoyed its second consecutive month of growth in August. While electric vehicles (EVs) appeared to push this positive momentum, some industry voices remained cautious. Autovista24 editor Tom Geggus reviews the developments.

With 207,229 new cars delivered, the German new-car market grew by 5% year on year in August, the KBA confirmed. This follows an 11.1% rebound in July and underscores growing momentum, particularly for EVs.

However, with a 1.2% increase recorded in May, this was only the third month of positivity so far in 2025. January, February, March and April all saw single-digit declines, while registrations fell by 13.8% in June.

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This meant deliveries were still down in the year to date. Autovista24 calculations reveal that 1,874,805 new passenger cars took to the country’s roads, down 1.7% year on year. This improved on the 4.7% year-to-date decline recorded in June, the lowest point of the year so far.

The VDA highlighted that the German new-car market still lags significantly behind August 2019, before the COVID-19 pandemic. According to the body, registrations remain one quarter lower compared to this period.

Germany’s EV growth

With 39,367 battery-electric vehicles (BEVs) delivered in Germany during August, the country’s all-electric market grew by 45.7%. This meant the powertrain represented 19% of all registrations in the country, up by 5.3 percentage points (pp).

The year-to-date numbers were slightly behind, with growth of 39.2%, according to Autovista24 calculations, as 336,707 BEVs were delivered. Meanwhile, the powertrain’s market share increased by 5.3pp year on year to 18%.

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Enjoying an even greater rate of growth, plug-in hybrid (PHEV) figures increased by 76.7% in August. The powertrain’s registration total hit 23,973 units, equating to an 11.6% share, up 4.7pp.

In the year to date, Autovista24 calculates that PHEVs accounted for 10.1% all registrations, up by 4pp. This was thanks to 190,075 deliveries, up by 61.2% compared with the first eight months of 2024.

Combined, the two powertrains accounted for 30.6% of the German new-car market in August, up by 10pp. This means EV registrations increased by 56.1% to 63,340 units. In the year to date, the EV share grew by 9.2pp to 28.1% as 526,782 plug-ins were delivered, up 46.4%.

‘These figures highlight the accelerating shift towards electric mobility in Germany, supported by both consumer demand and manufacturer offerings,’ commented Robert Madas, Autovista Group’s regional head of valuations.

German mobility preferences

A new survey of 1,048 people conducted on behalf of the VDA revealed consumer mobility preferences in the German market. Only 22% of respondents could imagine buying an electric car in the next few years. This number has stayed effectively static since 2021.

Of those surveyed, 60% rejected the technology for various reasons. Meanwhile, openness to electric cars appeared evident among those below the age of 30 and those of higher socioeconomic status.

The primary motivations for purchasing an electric car included reduced taxes and insurance costs. Additional factors were environmental considerations, extended ranges, lower noise levels, rising fuel prices, and the continued development of charging infrastructure.

‘German manufacturers already offer around 110 different electric models on the German market alone, and the variety, also in the lower segments, will continue to grow,’ said Hildegard Müller, president of the VDA.

She argued for federal government incentives to boost electric mobility and for greater charging affordability. Müller said the federal government must also reduce ancillary electricity costs.

‘Furthermore, it must immediately ensure that the extension of the vehicle tax exemption for electric vehicles until 2035, as promised in the coalition agreement, is implemented,’ she added.

Separately, Müller highlighted that: ‘The price of electricity in Germany is currently up to three times higher than in the US or China.’ She added that the high electricity costs are burdening the competitiveness of companies in the German automotive industry. The ramp-up of electric mobility is also facing friction because charging is too expensive.

Germany’s private EV demand

The ZDK asserted that August’s EV growth was deceptive, as most of the growth was not coming from consumers. Instead, the body pointed towards tactical registrations and a growing number of lease returns. This only serves to put more pressure on Germany’s used EVs.

‘Demand from private customers for new electric vehicles remains too weak, the market continues to be artificially inflated by self-registrations by manufacturers and dealers. The current figures conceal the fact that we still haven’t achieved a sustainable breakthrough in electromobility,’ said ZDK President Thomas Peckruhn.

‘The private market urgently needs targeted stimulus, such as a reduction in the still excessively high price of charging current, to achieve a stable foundation,’ he added. ‘BEV demand for new private and commercial registrations is stagnating, even though there is now a good selection of BEV models at affordable prices in dealerships.

‘Registration numbers alone are not proof of market penetration. What matters is whether e-mobility also appeals to private customers, and that is precisely not the case at the moment,’ Peckruhn concluded.

Variable hybrid growth

Hybrids, including full and mild powertrains, saw another varied performance in August. The 5.1% year-on-year rate of growth was down from the 15.5% increase in July, but above June’s 1% stagnation.

With 58,605 deliveries, hybrids accounted for 28.3% of new-car registrations, the same share from 12 months prior. The powertrain grouping saw its share grow by 3pp in the year to date as 533,743 units hit the road. This was up by 10.1% year on year.

Combining hybrid and EV registrations, electrified models made up 58.8% of the German new-car market in August, up 10pp. Deliveries increased by 26.5% to 121,945 units. In the year to date, electrified sales grew by 25.6%, with 1,060,525 deliveries, according to Autovista24 calculations. This equated to a market share of 56.6%, up by 12.3pp.

Slippery situation for ICE

Amid electrified growth, internal-combustion engine (ICE) vehicles continued to feel the heat. Registrations of petrol-powered models fell by 18.2% in August to 57,253 units. This meant its market share dropped by 7.8pp to 27.6%.

This drop was more severe in the year to date as the petrol share hit 28.1%, down 8.8%. Registrations reached 526,904, based on Autovista24 analysis, dropping 25.2% year on year. This equated to 177,086 fewer units, the biggest fall of any powertrain.

Following July, diesel’s slower descent continued in August, with deliveries down 9.2% to 27,219 units. Its market share hit 13.1%, down by 2.1pp.

These two single-digit decreases could not soften the blow of the previous double-digit drops. Between January and August, 279,130 diesel models were registered, equating to a fall of 19.9%. This meant the fuel type made up 14.9% of the market, down 3.4pp.

Combining these two powertrains, ICE models accounted for 40.8% of sales in August. This was thanks to 84,472 registrations, down 15.5%. In the year to date, the grouping suffered a 23.4% descent to 806,034 units, Autovista24 calculated. This meant ICE made up 43% of the market, down 12.2pp.

The UK saw another month of new-car registration declines in August. But have the country’s EV incentives started to make an impact in battery-electric vehicle (BEV) deliveries? Autovista24 special content editor Phil Curry explores the figures.

The UK’s new-car market continued to struggle in August, as the country’s difficult year for deliveries continued. According to data from the SMMT, a total of 82,908 new passenger cars were registered in the month, 2% down year on year.

Alongside February, August is traditionally one of the UK’s lowest-volume months, as buyers wait for the ‘plate change’ in September. Compared with August 2024, last month saw a decline of 1,667 models.

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Fleet uptake dominated the month, making up 59.1% of all new cars taking to the road. This was despite a 4.6% reduction in volumes. Interest from private buyers grew by just 0.7%, to account for 39% of registrations. Meanwhile, the business sector improved by 41.6%, although this equated to fewer than 500 additional units and a 1.9% share.

Across the first eight months of the year, the UK market was up by 2.1%, with 1,265,281 units delivered. This position was thanks to a strong performance in March, the first plate-change of 2025. Should September provide a similar boost, the country could end the year with a registration improvement, barring any serious declines.

BEVs continue their upward trend

Registrations of BEVs improved by 14.9%, with 21,969 new models taking to the country’s roads. This was, however, the third-lowest improvement of the year, highlighting the momentum the technology built up in the first quarter.

Yet the 26.5% market share achieved is the highest seen in 2025 so far. It was even the fourth-highest share on record, according to the SMMT. This forms a trend with 2023 and 2024, where low August volumes and high fleet uptake strengthened the BEV hold.

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Across the first eight months of the year, BEV deliveries were up 29.5%. This was thanks to three consecutive months between January and March, when registrations improved by over 40%. In total, 276,635 all-electric models have taken to the roads, an increase of 63,091 units.

This gave BEVs a 21.9% market share, up 4.7pp year on year. However, this was some way below the 28% required by the country’s zero-emission vehicle (ZEV) mandate. With just four months of reporting left, the UK government’s incentive scheme has some heavy lifting to do.

The EV incentive conundrum

Following their introduction in July, August was the second month of registrations since the introduction of BEV incentives. The scheme sees a list price discount of £3,750 for band one vehicles, and £1,500 for second tier models.

However, the impact may not be realised until the new-plate month of September. Buyers could be waiting to collect their cars from dealerships or holding out for the announcement of more models qualifying.

There are currently 35 passenger cars, listed by the UK government, eligible for the grant. However, of these, 33 are available in band two, with a discount of £1,500.

This includes models from Volkswagen (VW) Group, Stellantis, Renault and Toyota. These are leading manufacturers, yet their environmental credentials have struggled to meet the strict requirements of the scheme.

Only two cars are available with the full £3,750 discount. These are both from Ford, the Puma Gen-E and the E-Tourneo Courier. While the next-generation Nissan Leaf is expected to qualify too, that is still a small number for the maximum discount.

Tighter incentive thresholds

The government has now tightened the scheme, restricting the model options available to qualify. Previously, the vehicle cost cap of £37,000 was aimed at base-trim models. This meant if the lowest-specification version was available at, or under, the threshold, all models in that range were eligible.

At the end of August, these rules were amended to place a £5,000 restriction on ranges. While the base model must still sell below £37,000 to qualify, any trim level over £42,000 will not be discounted.

This prevents carmakers from lowering base-model prices to qualify, while offering the rest of their range at full price. It also reduces the choice for customers, with many BEVs still expensive.

When the scheme was announced, many manufacturers announced plans to discount their models. This was either while waiting for BEVs to be included in the scheme or due to ineligibility, ensuring continued competitiveness.

However, this is adding to the total of £16.5 billion worth of discounting seen in the first 18 months of the ZEV mandate. This was a figure highlighted by SMMT chief executive Mike Hawes at the International Automotive Summit in June.

Commenting on the latest numbers, Hawes stated: ‘There is still substantial ground to make up to reach the mandated targets. So, September, which is typically the second busiest month of the year, will be pivotal.

‘Manufacturers have put immense investment and innovation into the transition, with more than 140 car models available in the UK as zero emission, while at the same time offering unprecedented and unsustainable discounts to accelerate demand,’ he added.

PHEVs on the up

In terms of improvement in August, the best powertrain performance came in the plug-in hybrid (PHEV) market. Deliveries were up 69.4%, with 9,803 units finding their way to customers. This was a rise of 4,017 models compared to the same point last year.

PHEVs took an 11.8% market share, up 5pp against August 2024. This meant it achieved a greater share than full hybrids (HEVs), making it the UK’s third-biggest-selling powertrain technology.

Between January and August, PHEVs saw registrations improve 33.7%. This kept the powertrain as the best-performing in terms of volume increase, a position it took from BEVs in July. Its 10.6% market share in the eight-month period was up 2.5pp.

Combining BEVs and PHEVs, the electric vehicle (EV) market grew 27.6% in August, with 31,772 new models taking to the roads. This gave the plug-in sector a 38.3% share, up from 29.4% a year prior.

Meanwhile, in the year-to-date figures, EVs were up 32.5%, an improvement of 7.2pp on the same period last year. This is the highest the share has been, and is approaching a third of the market.

Hybrids struggling

For the first time this year, HEVs have fallen to the fourth-most-popular powertrain in a month. During August, 9,456 full-hybrids were registered, a drop of 13.9%, equating to 1,521 fewer models.

This was the third consecutive negative month for the technology, with its market share falling to 11.4%, from 13% last year.

Over the first eight months of 2025, HEVs saw registrations increase by 5.1%, with 174,784 units delivered. This overall rise in volumes has dropped from a high of 18.7% in March, with four monthly declines since then. This means the technology’s market share sat at 13.8%, just 0.4pp up year on year.

Adding HEVs into the EV mix, electrified model deliveries increased by 14.9% in August, with 5,352 additional models taking to the country’s roads. This gave the technology mix a 49.7% market share, up 7.3pp.

This means electrified vehicles are close to becoming the dominant powertrain grouping in the UK. With the country mixing mild-hybrids into their respective internal-combustion engine (ICE) figures, this would be a significant development.

Is ICE dominance over?

The rise of electrified models comes at the expense of petrol and diesel, which continued their registration slide. 37,373 petrol-powered cars reached customers in August, a drop of 14.2%, or 6,161-units, year on year. This was the fuel type’s lowest volume of the year so far.

The poor performance left petrol with a market share of 45.1%. This was still the leading figure in the UK new-car market, but represented a drop of 6.4pp compared to August 2024.

Between January and August, petrol volumes fell by 10.3%, with their share down 6.7pp, to 48.1%. In total, 608,484 models were delivered to customers.

Meanwhile, diesel also saw its lowest registration volume of 2025, with 4,307 units taking to UK roads in August. This was a drop of 16.6%. The figure meant a market hold of just 5.2%, down 0.9pp.

In the first eight months of the year, diesel saw volumes decline by 11.3%, with 71,047 registrations. This equates to a 5.6% market share, down 0.9pp.

Combining petrol and diesel, the ICE market fell 14.4% in August, with 7,019 fewer units delivered. The sector maintained its dominant position, but only just, with a 50.3% market share. This was down from 57.6% recorded in the same period last year.

Meanwhile, in the year-to-date, ICE registrations were down by 10.4%, as volumes dipped by 79,063 units. Their 53.7% share of total registrations fell by 7.5pp. This means the gap between ICE and electrified continues to close as the year draws towards its end.

After seven painful months of decline, the French new-car market finally recorded growth in 2025. This was driven by battery-electric vehicles (BEVs) and hybrids. But are all-electric cars really in a sweet spot, or are incentives and regulations swaying results? Autovista24 journalist Tom Hooker investigates.

New-car registrations in France increased by 2.2% year on year in August to 87,850 units, according to the PFA. This was despite one less working day in the month compared to August 2024. It marked the country’s first year-on-year growth in 2025 and the best improvement since April 2024.

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Despite this, the long-term rental sector endured a 20% decline, while fleet registrations dropped by 8%, according to AAA Data. Deliveries attributed to private individuals fell as well, down 3%. Conversely, short-term rental registrations surged by 49%.

‘It should be remembered, however, that the basis of comparison in August 2024 was particularly low,’ highlighted AAA Data head of automotive market analysis Marie-Laure Nivot.

‘The general trend, therefore, remains very negative, with no prospect of a turnaround before the return of electric leasing from 30 September, which should add 50,000 cars to the overall balance sheet for the year,’ she commented.

New-car volumes were still down by 7.1% from January to August, with 1,046,421 models taking to French roads.

A breakthrough for BEVs?

BEV volumes soared by 29.3% year on year last month, according to Autovista24 calculations. This marked the second consecutive month of double-digit growth, after a strong July.

The technology posted 16,993 sales in August, claiming a 19.3% market share. This ensured a significant rise from the 15.3% share recorded at the same point last year.

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However, BEVs have still not escaped the red in the cumulative 2025 figures. Deliveries lagged last year’s sales total by 2%, with 184,872 sales. BEVs accounted for 17.7% of total registrations from January to August. This was up from 16.7% one year ago.

Complex puzzle for French fleets

The fleet sector proved the main catalyst for BEV growth in August. In this corner of the market, BEVs recorded a 57% uptick in deliveries, according to AAA Data. This meant the powertrain made up 24% of the channel’s overall volumes.

‘Fleet users have seen tax rates increase for all vehicles. But, since February 2025, BEVs have benefited from a benefit-in-kind deduction of 70%. This is compared to a 50% deduction before February,’ explained Ludovic Percier, Autovista Group’s senior RV analyst for France.

‘As a result, all-electric models are now only slightly more expensive for fleet users. Meanwhile, internal-combustion engine (ICE) vehicles face a much sharper rise in costs without any deductions. This means that BEVs remain a beneficial choice for both fleets and fleet users relative to ICE-powered cars, despite the overall increase in taxation,’ he added.

The Loi d’Orientation des Mobilités law outlines the required electrification quotas for companies, leasing and rental firms managing fleets of over 100 light vehicles. This has further hampered the ICE market and pushed more demand towards BEVs.

‘Since July 2024, 20% of new vehicles purchased must be low-emission vehicles, specifically either an electric vehicle (EV) or a hydrogen model. This threshold is up from 10% in 2022 and will rise to 40% in 2027,’ Percier outlined.

Instant incentive impact for BEVs?

The private sector witnessed a 1% downturn in BEV deliveries. This is an improvement compared to a 15% fall in July. Before this, the channel suffered even steeper all-electric sales drops of 30% in June and 58% in May.

The ‘electric private vehicle boost’ incentive was introduced on 1 July. It provides slightly more favourable subsidies compared to the previous bonus scheme, while keeping the same eligibility criteria.

There will be €3,100 available for households whose tax income is above €16,300 when they purchase an EV. For the lowest-income households, €4,200 will be offered.

So, it may seem that the new incentives have had an instant impact. Yet, on closer inspection, the slowing decline of BEVs in the private sector is not that simple. In fact, the reason behind the powertrain’s comeback may explain France’s wider new-car market struggles.

‘BEV incentives have seen an overall declining trend in terms of the funds available since July 2021. Moreover, since early 2024, all-electric models are required to have a low carbon footprint in the whole production process to be granted the bonus. This takes away almost all the non-European-produced cars,’ said Percier.

A wider market effect

‘The only realistic positive for private buyers is that carmakers are finally offering cheaper BEV models in smaller segments. These are still considered expensive compared to other powertrains, but they are getting more affordable and appealing over time,’ he added.

‘Overall, the all-electric market is being driven by increased taxes on ICE vehicles and laws forcing companies to buy BEVs. This is either to meet regulated quotas or to avoid much higher taxation.

‘In turn, this is causing registration declines across all other powertrains. The fleet channel alone represents around 50% of the French new-car market.

‘Fleets do not want to change their vehicles to be under the new regulation with higher taxes. So, they are increasing the length of the leasing contract. Private buyers are keeping their cars for longer, as they do not know which powertrain to choose.

‘These factors are keeping registration numbers 7.1% down on the cumulative 2024 figures,’ summarised Percier.

Hybrids help registration growth

The hybrid market, which includes full and mild hybrid volumes, saw a similar improvement. Registrations increased by 30% year on year to 39,721 units in August, according to Autovista24 calculations. Its market share consequently grew from 35.5% to 45.2%.

From January to August, hybrid sales rose by 30.5%, with 469,127 new models delivered. It remains the only powertrain ahead of its cumulative 2024 figure, showing the frightening state of the new-car market. In fact, the technology’s 109,593-unit gain is not even enough to balance out petrol’s volume loss alone.

Hybrids currently represent 44.8% of total new-car volumes in 2025, up 12.9 percentage points (pp) year on year. It has distanced itself at the head of the market, ahead of petrol by 22pp. One year ago, the fuel type trailed hybrids by 0.1pp.

Head-scratching PHEV performance

While BEVs and hybrids enjoyed a strong August, plug-in hybrids (PHEVs) recorded another decline.

The technology, which has not managed a single month of growth in 2025, suffered a 5% sales drop. However, this was its smallest decline so far this year. Its 5,855-unit total translated to a 6.7% market share, down 0.5pp compared to August 2024.

The technology’s year-to-date performance was dampened by sharp declines from the start of the year. It endured a 28.8% slump across the first eight months of 2025, with 63,419 units, according to Autovista24 calculations. PHEVs captured 6.1% of the country’s new-car market, down from 7.9%.

So, while HEV volumes are increasing and BEV registrations are reaching stability in the cumulative figures, why are PHEVs struggling?

‘Petrol and diesel volumes are decreasing in favour of BEV and HEV models, but not PHEVs. This is mostly because fleets are not interested in the technology anymore, even with a higher range of roughly 100km for new models. This explains the double-digit PHEV decline so far this year,’ highlighted Percier.

EV registrations drop

The EV market, which combines BEV and PHEV figures, is being pushed down by the latter powertrain’s decline. EV sales fell by 10.6% from January to August, with 248,291 units, according to Autovista24 calculations. This equated to a 0.9pp year-on-year drop in market share to 23.7%.

However, things looked much brighter in August alone. EV volumes improved by 18.3% in the month, with 22,848 deliveries. The powertrain grouping made up 26% of total registrations, its highest share so far this year. This was a 3.5pp rise from its market hold in August 2024.

Adding hybrids to EV volumes, the electrified market managed growth in both the monthly and cumulative figures. The powertrain grouping enjoyed a 25.5% surge in August. Its market share jumped to 71.2%, according to Autovista24 calculations.

Across the first eight months of 2025, electrified deliveries were up by 12.6% to 717,418 units. As the rest of the new-car market declined, the grouping’s share has unsurprisingly increased from 56.5% to 68.6%.

Hopeless ICE market

Registrations of petrol-powered cars continued to drop in August. The fuel type suffered a 32.4% fall to 18,323 units, according to Autovista24 calculations.

This marked its 18^th consecutive month of double-digit decline. Consequently, its market hold declined by 10.6pp to 20.9%, matching its lowest share of the year so far recorded in April.

In the year to date, petrol deliveries slumped by 33.5%, to 238,089 units. It represented 22.8% of the new-car market from January to August, down 9pp compared to one year ago.

The diesel market faced the same fate as its ICE sibling. Volumes dropped by 26.9% in August, according to Autovista24 calculations. This was its 14^th consecutive month of double-digit decline. The fuel type’s total of 4,289 deliveries translated to a 4.9% market share, down 1.9pp year on year.

After eight months of 2025, 52,595 new diesel-powered cars were delivered to customers, a 40.1% slump. In turn, its market share slipped from 7.8% to 5%.

Combining the performance of petrol and diesel models, the ICE market saw a 31.4% sales drop in August. This meant the pair captured 25.7% of overall volumes, 0.3pp behind the EV market.

The powertrain grouping suffered a 34.8% decline from January to August. This was reflected in its market share, which fell from 39.6% to 27.8%.

Italy’s new-car market continued its downward spiral in July. Increases in battery-electric vehicle (BEV) and plug-in hybrid (PHEV) registrations were not enough to stop the downturn. Could purchase incentives help trigger a revival? Autovista24 web editor James Roberts investigates.

Italy’s new-car market recorded a third consecutive month of decline in July, according to data from industry body ANFIA. A total of 118,583 new vehicles took to the country’s roads in the month, down from 124,934 one year previously, marking a 5.1% drop.

In the year to date, deliveries amounted to 973,755, down 3.7% when compared to the first seven months of 2024. This represented a deficit of 37,810 new car deliveries.

This performance confirmed the ongoing struggles faced in Italy’s new-car market. It also put the relatively prosperous results recorded in March and April are firmly in the rear view mirror. But what is the key driver of this market inertia?

ANFIA highlighted continued confusion over emissions targets. It said a lack of clarity surrounding government electric vehicle (EV) incentives is weighing ‘like a boulder’ on the market.

Petrol and diesel registrations have continued to decline. Meanwhile, the market share of plug-in vehicles has stagnated, making ‘uncertainty and perplexity in possible buyers’ a serious issue.

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Italy’s BEV boost not enough

The trend of increased BEV sales continued in July. Unfortunately, this is no cause for celebration. The 5,864 registered BEVs marked the lowest monthly volume so far in 2025. It also equated to a 37.6% increase of 1,601 more units compared to July 2024.

So far this year, BEVs have captured an increasing market share each month. However, July’s 4.9% market share only amounted to a year-on-year increase of 1.5 percentage points (pp).

Between January and July, BEVs amassed 50,589 registrations, a 29% improvement on the same period in 2024. This translated to a 5.2% market share, up 1.3pp, up from 12 months prior. With BEV deliveries down in June, the year-to-date growth was stunted again in July.

Since a 126.2% BEV registration increase in January, subsequent months have seen growth exceeding 70%. This trend declined in June and July, with year-to-date totals coming in at 28% and 29% respectively.

Italy continues to have one of the slowest EV adoption rates across the major European markets. BEVs have struggled to maintain a monthly market share above 5% in 2025. This has been forged by a variety of factors. A lack of EV charging infrastructure, complex powertrain demands, and the inconsistent rollout of incentives have all contributed.

Clarity key to electrification?

Italy’s government recently announced new incentives to promote BEV adoption. In early August, minister for the environment and energy security, Gilberto Pichetto, confirmed these will be rolled out from September 2025.

Plans include around €600 million being made available from the National Plan for Recovery and Resilience (PNRR). It is hoped this initiative will promote the sale of at least 39,000 EVs by 30 June 2026.

Based on the indicatore della situazione economica equivalente (ISEE), a standard Italian government measure of respective household incomes, Pichetto outlined a tiered system. Contributions of up to €11,000 for consumers with an ISEE of up to €30,000, and up to €9,000 for those with an ISEE between €30,000 and €40,000, were confirmed. For micro enterprises, coverage of up to 30% of the purchase price will be provided, with a limit of €20,000 per new vehicle.

Recent incentives have had positive impacts on the Italian new-car market. April saw triple-digit year-on-year increases for BEV sales. This boost could be attributed to the Ecobonus scheme, re-launched in December 2023 but not coming into effect until June 2024.

Following July’s market outcome, ANFIA highlighted a need for emissions clarity, both domestically and on an EU-wide scale. In particular, the industry body lamented the absence of a definitive revision of CO₂  emission guidelines and is requesting a ‘stop-the-clock’ measure pending any concrete outcomes.

PHEVs good but remain marginal

PHEVs enjoyed their second-best year-on-year performance in July. The powertrain recorded 8,789 deliveries and an 83.2% increase in sales compared to 2024. This result was only bettered by May’s sizeable 94.4% upswing.

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Kicking off the second half of the year, PHEVs commanded a 7.4% market share. This was up from 3.6pp recorded 12 months ago, the largest monthly slice of the market so far this year.

Spanning January to July, PHEV gains continued to prevail. However, despite continued double-digit increases, the powertrain held a market share of just 5.5% in the year to date. This is up from 3.3% when compared with the 12 months prior.

Italy’s plug-in dilemma

Combining BEV and PHEV registrations, the EV market performance appears positive. July underscored a surge of 61.7%, with 14,653 units registered.

This pushed the market share to 12.4%, up from 7.3%, as registered in July 2024. Looking at the first seven months of 2025, gains are also apparent.

In total, 104,121 BEVs and PHEVs made their way to customers in Italy between January and July. This equalled a 43.4% year-on-year increase, and a positive unit difference of 31,522.

The plug-in market share weighed in at 10.7% seven months into 2025. This is an increase of just 2pp since January, underlining the prevailing stagnation in Italian electrification, voiced by ANFIA.

Hybrid momentum continues

Hybrids, consisting of both full and mild versions, were the preferred choice in July. Impressively, they have held this position every month so far this year. However, the powertrain’s appeal as a possible gateway to full electrification appeared to wane in July.

The month saw the lowest delivery volume so far this year, with 52,496 vehicles hitting the road. Despite this, hybrids accounted for a sizeable 44.3% market share, continuing a consistent trend. This was up from 39.9% when compared with July 2024.

In the year to date, hybrids made up 44.2% of the market and look sure to end 2025 as the most popular powertrain. So far this year, 430,144 hybrid vehicles have been registered in Italy, compared with 393,083 across the first seven months of 2024. This rounds up to a 9.4% increase year on year.

Hybrids continue to prop up electrification

All electrified registrations, combining hybrid, BEV and PHEV deliveries, recorded a 14% year-on-year lift in July. This meant a combined registration total of 67,149 units.

While this is not the lowest figure so far in 2025, it does underpin wider inertia. June’s 7.2% decline highlighted the market’s limits. However, July provided the joint second-worst growth rate and the smallest absolute unit volume. A continued point of concern for the Italian new-car market centres on the reliance on hybrids. The overall electrified market has been inflated by the powertrain.

In the year-to-date, combined electrified powertrains reached 534,265 registrations between January and July. This equated to a 14.7% year-on-year increase. The powertrain grouping made up over half the market at 54.9%, up 8.9pp year on year. As with the monthly market makeup, hybrids kicked off the second half of the year by doing the heavy lifting.

ICE doldrums continue

In lock step with many major European markets, internal-combustion engines (ICEs) have continued to diminish in popularity in Italy.

Petrol-powered cars saw the second largest year-on-year drop, down 22.4%, with 27,849 units shifted. The monthly market share fell from 28.7% 12 months ago to 23.5%. However, this still puts it behind hybrids as the second most popular powertrain.

Spanning January to July, petrol registrations accounted for 25.8% of the market. This was the smallest share for the fuel type so far this year, exposing a wider issue. As petrol’s deliveries dropped by 17.8% in the year to date, the falling volume dragged the overall market down.

Diesel dragging down

A similar narrative continued for diesel models. July saw the fewest registrations this year at 11,571, contributing to a 27.4% year-on-year slip and a market share of 9.8%. Widening the analysis to the first seven months of the year and diesel’s decline was stark.

A 31.6% year-on-year decline marks it as the worst-performing powertrain. This was underpinned by a considerable deficit of 45,512 units compared with the same period 12 months prior.

The combined malaise of petrol and diesel meant the ICE grouping saw registrations hit a new low in July. 39,420 of these cars hit the road, down 23.9%. The year-to-date decline was similar, down 22.2%.

Combined petrol and diesel registrations accounted for 36% of the overall Italian new-car market between January and July. The share fluctuation confirms that while ICE powertrains are melting away, they are proving a stubborn thorn in the side of electrification.

As the UK adopts incentives for battery-electric vehicle (BEV) purchases, the market suffered another decline in new-car deliveries last month. Autovista24 special content editor Phil Curry examines the situation.

The UK’s new-car market fell back into decline in July, as the country’s rollercoaster registrations ride continued.

In July, 140,154 new models were registered, according to data from the SMMT. This was a 5% decline compared to the same month last year. The fall comes despite the announcement of new incentives aimed at boosting the sales of BEV models.

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Demand from private buyers fell by 3.2% to 51,646 units in the month. Meanwhile, fleet registrations also declined, with 85,594 units representing a 6.5% drop. Deliveries in the lower volume business sector climbed 10.4% to 2,914 units. 

Across the first seven months of the year, UK registrations were up 2.4%. This was thanks to a strong performance in March, with further increases in May and June. In total, 1,182,373 units have been delivered so far in 2025.

Will incentives provide benefits?

The UK government announced a new incentive scheme for the purchase of new BEVs, which became available during July.

The plans require manufacturers to nominate their passenger cars and light-commercial vehicles to be eligible. A split-tier incentive scheme means models will either qualify for a discount of £3,750 (€4,299) or £1,500.

The grant level is based on strict sustainability criteria. Carmakers must have committed to a science-based target on emissions. Specifically, a goal to cut greenhouse gas emissions in line with the Paris Agreement on climate change.

According to the Independent, manufacturers will need to demonstrate their vehicles meet minimum technical requirements. They must also submit details about the manufacturing process and have a net-zero target in place.

The carbon emissions of electricity grids in the manufacturing location will also be important. This will count towards an environmental score assigned to the vehicle assembly and battery production location. A weighting of 70% is applied to the assessment of CO₂ emissions from battery manufacturing, and 30% to vehicle assembly.

Models will also need to cost below £37,000 to be eligible for the scheme. This is below the government’s expensive car supplement (ECS) threshold of £40,000, which still applies to BEVs.

Incentives momentum is essential

With £650 million applied, the incentive scheme will run until the end of April 2029. The aim is to boost BEV sales at a time when overall registrations remain below 2025’s 28% zero-emission vehicle (ZEV) mandate threshold.

As the UK moves towards the end of petrol and diesel new-car sales in 2030, these targets will get larger. While BEV uptake has improved, it has not hit the levels expected.

‘Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just one in four today, to four in five by the end of the decade,’ commented SMMT chief executive, Mike Hawes.

‘This announcement is a welcome response to consistent calls from the industry for more support, which will be in addition to the substantive subsidies already provided by manufacturers,’ he added.

Manufacturer response to incentives

With reduced prices coming into effect from 5 August, the first models to secure the £1,500 discount are:

• Citroën ë-C3 and Citroën ë-C3 Aircross
• Citroën ë-C4 and Citroën ë-C4 X
• Citroën ë-C5 Aircross
• Citroën ë-Berlingo

With no higher discounts awarded, this highlights the potential difficulty in achieving the required sustainability status for the maximum amount. Some carmakers have already begun including discounts against models at their own expense.

Announcing its support for the scheme, MG introduced a £1,500 discount on certain all-electric models, separate from governmental funding. Smart UK announced its own £1,500 incentive scheme, on top of existing offers. Volkswagen (VW) Group has introduced a £1,500 ‘government guarantee’, providing a discount to buyers while it waits for model eligibility.

Meanwhile, Chinese carmaker BYD has announced its own scheme after what it calls ‘uncertainty surrounding eligibility’ around the government scheme.

‘While BYD has formally applied to be included in the government-backed scheme, the brand may not be immediately eligible,’ the carmaker said. Therefore, it has increased its battery warranty to eight years and has launched five years of free servicing on selected models.

These moves are likely to increase the burden of manufacturer discounting. This already reached around £6.5 billion since the introduction of the ZEV Mandate in January 2024, according to the SMMT.

The government also provided details on plans for £63 million of funding to support at-home charging for households with driveways.

This aims to make it easier for councils to put channels in pavements. Drivers will then be able to run cables from their home to their vehicle parked on the road outside. The funding will also help transition NHS fleets and create thousands of charge points at business depots.

BEV growth slows

The incentives did little to affect BEV uptake in July. While model eligibility is confirmed, private buyers may be holding back, waiting to see which discounts are available.

In the month, BEV registrations increased by 9.1% year on year. This was the second-lowest improvement of the year, and the second time growth has been below 25%. It is also a far cry from the first quarter of 2025, when the total registration rise was 42.2%.

In total, 29,825 new all-electric models took to UK roads last month, 2,490 units more than a year ago. This gave the technology a 21.3% market share. While this was up by 2.8 percentage points (pp), it was still below the ZEV mandate target of 28%.

In the first seven months of the year, BEV registrations increased by 31%, with 254,666 units delivered to customers. This is a rise of 60,235 passenger cars compared to the same period in 2024.

The 21.5% market share was 4.7pp higher than that achieved between January and July 2024. However, this is some way off the ZEV mandate target.

‘Confirming which models qualify for the new BEV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch,’ added Hawes.

‘That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions,’ he added.

Phenomenal PHEV performance

The standout powertrain in the UK during July was the plug-in hybrid (PHEV). It saw registrations increase by 33%, with 17,489 units delivered. This gave the technology a 12.5% market share, up from the 8.9% recorded in the same month last year.

In the first seven months of 2025, PHEVs have seen registrations improve by 31.5%. This means their growth rate is now higher than BEVs. In total, 124,528 units have been delivered, giving PHEVs a 10.5% hold of the market. This is a jump of 2.3pp year on year.

Combining BEVs and PHEVs, the electric vehicle (EV) market saw a rise of 16.9% in July. This equated to 6,830 more models taking to the road. Their share of 33.8% was up 6.4pp compared to the same month in 2024.

In the year to date, EV deliveries were up 31.2%, reaching 379,194 units. A 32.1% market share was up from the 25% recorded in the first seven months of 2024.

Hybrids struggling

Full hybrid (HEV) figures dropped for the second consecutive month and the third time in 2025. Deliveries were down 10% in July with 18,551 units, equating to a 13.2% market share. This was 0.8pp down year on year.

Between January and July, HEVs have seen registrations improve by 6.5%, with 165,328 deliveries. This provided the technology with a 14% share of the market, rising by just 0.5pp compared to 12 months prior.

The monthly market share between HEVs and PHEVs has been narrowing across 2025. The gap between the two powertrains in July was just 0.7pp, while in the year-to-date, PHEV trailed HEVs by 3.5pp. Momentum appears to be firmly behind PHEV powertrains in the UK market at present.

Combining EVs and HEVs, the electrified vehicle market saw a 7.8% improvement in July, with 4,758 more models delivered. This equated to a 47% share of the total, up 5.6pp.

Between January and July, registrations improved 22.5%, with 100,137 more units hitting the road. Its 46.1% share was up from 38.5% seen in the same period during 2024.

ICE continues to drop

While EVs flourish, internal-combustion engine (ICE) figures, which include mild-hybrid powertrains, continued to fall in the UK.

Petrol registrations declined by 14.7% in July, with 66,271 units delivered. However, this figure was still the highest total of any powertrain, even with 11,431 fewer models taking to the country’s roads than July 2024. The performance gave petrol a 47.3% share of total figures, down by 5.4pp.

Petrol is on a downward spiral, suffering declines in each month of the year so far. Figures between January and July were down by 10.1%, with 571,111 deliveries.

However, this is a difference of 63,856 units year on year. This means petrol held 48.3% of the UK market. Its share is still dominant, but down by 6.7pp compared to the same period last year.

Meanwhile, following its slight improvement in June, diesel returned to a decline in July. Figures were down 7.9%, with 8,018 registrations. This was a difference of just 690 units year on year. In terms of market share, diesel now lags well behind other powertrains. Its 5.7% hold in the month was 0.2pp down compared to July 2024.

In the first seven months of 2025, diesel has seen 66,740 registrations, a 10.9% decrease compared to 12 months prior. Its 5.6% market share was 0.9pp down on the same period last year.

These poor performances meant that the overall ICE market fell by 14% in July. It still led the electrified sector, with a 53% share. This was down, however, from the 58.6% market hold it recorded in July last year.

Across the first seven months of the year, ICE registrations were down 10.1%. Its 53.9% market share was still leading but was down by 7.6pp.