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

"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."

"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."

"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."

UK new car registrations surged to over 90,000 vehicles in February, the strongest performance since 2004, driven by improved supply chains, consumer demand, and dealer incentives. However, electric vehicle adoption is slowing. Battery electric vehicles registered totaled 21,840, a modest 2.8 percent year-on-year increase. Critically, EV market share fell to 24.2 percent from 25.3 percent year-over-year, marking the second consecutive monthly decline. This slowdown raises concerns about meeting government decarbonization targets. The UK's Zero Emission Vehicle mandate requires approximately one-third of new car sales to be electric by the mid-2020s, but current adoption rates fall significantly short of this 33 percent benchmark.

Read at Business Matters