Britain is set to miss its net-zero emission target for cars despite Electric vehicles (EVs) claiming a record share of the UK new car market in June, fuelled by billions of pounds in discounts.

Battery EVs accounted for 30 per cent of all new cars registered last month – the highest monthly share of the year – as the overall market posted its strongest June since before the pandemic, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 213,166 new cars were registered during the month, up 11.4 per cent year-on-year, with growth driven almost entirely by electrified vehicles.

Private registrations rose 12.5 per cent, fleet purchases climbed 10.5 per cent and business demand increased 17.1 per cent.

The milestone means one in every three new cars sold in June was fully electric, helped by quarter-end sales activity, a growing range of models and higher fuel prices following tensions in the Middle East.

Yet industry members pointed out that the transition remains heavily dependent on manufacturer support, rather than organic consumer demand.

Battery electric vehicles account for a record 25 per cent of registrations so far this year, but that still leaves the market well below the government’s 33 per cent Zero Emission Vehicle (ZEV) mandate for 2026.

To reach that target, electric cars would need to account for more than 40 per cent of all registrations across the remainder of the year.

Manufacturers have already spent more than £12bn discounting electric vehicles in an effort to stimulate demand, according to SMMT estimates, squeezing margins while weakening residual values.

“June’s performance is very strong, showing EV uptake is growing, with battery electric cars reaching their highest market share this year and more than half of buyers choosing electrified models,” said SMMT chief executive Mike Hawes.

“But even these record levels are still not enough to meet mandated targets. Manufacturers are investing billions developing and bringing the vehicles to market – and spending billions more to sell them, yet the market is still not moving fast enough.”

The trade body is urging ministers to reform the ZEV mandate, arguing the current compliance costs risk making Britain a less attractive market for automotive investment at a time when global manufacturers are reassessing their electrification strategies.

Infrastructure gap hinders momentum

The figures come as new analysis shows consumer appetite for electric vehicles continues to strengthen, particularly in the second-hand market.

In June, electric models occupied all three of Britain’s fastest-selling used cars for the first time, with the Tesla Model 3, Volkswagen ID.5 and Cupra Born topping Indicata’s rankings.

The UK is now the strongest used EV market among the 15 European countries tracked by the vehicle data firm.

However, analysis by ALA Insurance suggests Britain is on course to install only around 171,000 public chargepoints by 2030 if rollout continues at last year’s pace – almost 130,000 short of the government’s target of 300,000 despite a £1.6bn funding commitment.

“The industry looked at early adoption figures and assumed the tipping point was closer than it actually was,” said Simon England, founder of ALA Insurance.

“The truth is, until charging infrastructure feels as reliable as a petrol station and purchase price is within reach of ordinary buyers, most drivers will stick with what they know.”

He added that government policy had also created uncertainty by withdrawing the plug-in car grant, introducing vehicle excise duty on EVs and failing to accelerate charging infrastructure quickly enough.

Manufacturers including Honda, Ford, Mercedes-Benz, Nissan, Toyota and Volvo have all scaled back or delayed elements of their electric vehicle strategies over the past year as demand has softened in several global markets.

However, Melanie Lane, chief executive of charging provider Pod, said June’s record performance should give policymakers confidence that the transition remains on track.

“Today’s record figures mark another important milestone for the UK’s transition to electric mobility, with BEVs reaching 30 per cent of registrations – a new high,” she said.

“The priority for any new government must be to deliver a stable, long-term policy environment that gives manufacturers, charging providers and drivers the confidence to keep investing and accelerating the UK’s transition to electric mobility.”

Competitive pricing is also reshaping the market, where new entrants force established manufacturers to respond with sharper pricing.

Ian Plummer, chief customer officer at Auto Trader, said: “Battery electrics are now taking a third of the new car market, driven by intensifying competition and rising consumer interest in plug-in cars”.

“That should help lower the cost of switching and tempt more buyers into the new car market.”