July 2025 was an eventful month for the UK’s electric vehicle (EV) sector, with new policy announcements, sales data and vehicle launches demonstrating how fast the market is evolving. Despite 5%
drop in overall new-car registrations to around 140,000 units, battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) continued to grow their share.
Government incentives and sales data
The most important development was the Government’s launch of the Electric Car Grant on 16 July. The scheme provides either a £1,500 or £3,750 incentive towards the cost of a new EV priced at £37,000 or less, but only when the manufacturer meets stringent sustainability criteria. The grant, funded by £650 million, will run until at least the 2028–29 financial year and will also support cross‑pavement charging. New AutoMotive data showed that new car registrations in July grew 9.1% year-on-year to 29,825 units, giving BEVs a 21.3% market share. PHEV registrations jumped 33% to 17,489 units, pushing combined BEV/PHEV share to 33.8%, while petrol and diesel registrations fell by 14.7% and 7.9% respectively. The growth helps manufacturers move towards the zero-emission vehicle (ZEV) mandate requiring 28% of their sales to be zero-emission in 2025.
Winners and losers in the sales race
July’s figures also highlighted shifting fortunes for individual brands. Chinese carmaker BYD saw its UK sales quadruple to about 3,200 vehicles and its year-to-date total rise six-fold to 22,600, buoyed by aggressively priced models such as the Dolphin and Seal. BYD remains ineligible for the new grant because its cars are made in markets with carbon-intensive electricity. Tesla, by contrast, recorded a slump of more than 60%, selling fewer than 1,000 cars in July. Ford bucked the Ford bucked the trend, with its BEV registrations soaring by over 400%, while electric van registrations across all brands surged 57.6% year-on-year.
Goodwood Festival of Speed debuts
The Goodwood Festival of Speed (10–13 July) provided a showcase for upcoming EVs. Porsche revealed its Cayenne EV, a 1,000 hp all‑electric SUV boasting rapid charging and a serious towing rating. Hyundai launched the Ioniq 6 N, a 650 hp performance saloon that sprints from 0‑62 mph in 3.2 s and features synthetic engine noise and drift optimisation. Alpine previewed the A290 Rallye, a rally‑inspired hot hatch based on the Renault 5 E‑Tech, complete with limited‑slip differential, roll‑cage and a price of around £62,000. BYD’s premium Denza brand showed the B5 hybrid 4×4, offering 677 bhp and a 78‑mile electric range, alongside the tri‑motor Z9 GT with 858 bhp and a claimed 391‑mile range. Honda gave a glimpse of its future direction with the city‑focused Super EV concept and promised that next year’s Honda 0 SUV will deliver a long range and receive over‑the‑air updates. MG used the event to unveil the IM5 and IM6, both built on an 800 V architecture with 100 kWh batteries promising about 442 miles of range and pricing aimed squarely at Tesla’s Model 3.
Eligible models and industry response
Citroën became the first manufacturer to confirm that its e‑C3, e‑C3 Aircross, e‑C4, e‑C4 X, e‑C5 Aircross and e‑Berlingo meet the Electric Car Grant’s sustainability requirements; the discount is automatically applied and additional models will be added soon. Other carmakers, including MG, Hyundai and Volvo, have introduced their own price cuts to match the grant while they seek formal approval. Industry body SMMT welcomed the grant but warned that clarity is still needed on which vehicles qualify; its chief executive Mike Hawes noted that consumer confidence will depend on predictable incentives and policies for charging infrastructure.
With sales data trending upward, generous incentives and a steady stream of new product announcements, the UK’s EV market showed renewed momentum in July. However, the sharp decline in petrol and diesel registrations suggests that mainstream adoption is tied to affordability and infrastructure. As 2025 progresses, manufacturers and policymakers will need to ensure that their models qualify for government support, accelerate infrastructure roll‑out and continue bringing exciting new electric vehicles to British roads.
