One in four new cars sold in the UK last month was fully electric, with a bumper 39.1% surge in battery vehicle sales. But there are suggestions this success is being driven by manufacturer discounting designed to meet government green targets rather than mass market enthusiasm.
Motoring giants including Kia, Audi, MG and Ford are slashing thousands off list prices, throwing in free charging, and offering zero-deposit finance deals – all in a frantic effort to clear stock and avoid fines under zero-emission vehicle (ZEV) rules.
As a result, Britain say the strongest June for new car sales since 2019, with 191,316 cars registered, according to the Society of Motor Manufacturers and Traders (SMMT). Electric vehicles (EVs) accounted for 47,354 of those, pushing their market share to 24.8%.
But industry figures say this momentum has come at a cost – with manufacturers forking out an eye-watering £6.5 billion in discounts since the start of last year just to keep sales ticking over.
“Manufacturers are using every channel and unsustainable discounting to drive activity,” said SMMT chief executive Mike Hawes.
“As we’ve seen in other countries, government incentives can supercharge the market transition. Without them, the climate change ambitions we all share will be under threat.”
Biggest recent deals on new EVs
Mazda MX-30: Slashed by £8,285 off its £32,395 list price – one of the largest electric discounts available.
Ford Puma Gen-E Premium: Over £3,000 off, plus free home charger, five years of servicing, and up to £100 per month in running cost savings.
Kia EV range: Offers across the EV3, EV6 and EV9 models include 3.9% APR finance with no deposit, plus up to £2,000 dealer contribution and a year’s free public charging.
Audi Q4 and Q6 e-tron: Up to £8,750 in deposit contributions through PCP packages.
MG4 EV: Now on 0% finance, with up to £1,000 off the asking price.
These generous incentives have driven rapid growth – but most of the gains are coming from fleet and lease sales rather than private buyers, who remain cautious due to high prices, charging concerns and rising road taxes.
Private buyers left on the sidelines
While fleet registrations jumped 8.5% in June, private car sales rose a modest 5.9% – and still sit well below pre-pandemic levels.
Chinese brands muscle In
Chinese carmakers are also capitalising on the discount war – and their rise is rapid. Brands such as BYD, Omoda and Jaecoo have seen UK sales soar, with BYD up over 570% year-on-year.
Stuart Masson, editorial director of The Car Expert, told This is Money: « The biggest story of the year so far is the rise of the Chinese brands.
« They’re offering well-specced EV and hybrids at competitive prices, and buyers are responding. Other Chinese newcomers, like Leapmotor and Skywell, have had slower starts, but the momentum is clearly building, especially in light of LEVC, Lotus, Polestar and Volvo owner, Geely, confirmed to enter the UK car market on their own later this year. »
Calls for Government to step sn
While the private market remains lukewarm, the industry is urging ministers to take action – including scrapping the VED surcharge for EVs and cutting VAT on electric vehicles and public charging.
The SMMT says these two measures alone could put an extra 267,000 electric cars on the road by 2028, cutting six million tonnes of CO₂ annually.
“We’ve got the ambition, the technology, and the supply chain,” said Mike Hawes.
“But without the right policy framework, Britain risks falling behind.”
