Battery electric vehicles (BEVs) made up one in four new car registrations in February, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).

BEV registrations jumped 41.7% year-on-year, reaching 21,244 units and securing a 25.3% market share, up from 17.7% in February 2024.

However, despite this growth, BEV sales are still falling short of the 28% zero-emission vehicle (ZEV) mandate target for 2025.

Zero to…

The zero-emission mandate in the UK is still acting as a handbrake on car sales.

Introduced in January 2024, it requires 22% of all new cars sold in the UK in 2024 to be zero-emission, rising to 80% by 2030 and 100% by 2035.

Automakers who fail to meet these targets face fines of £15,000 per non-compliant vehicle.

However, industry experts warn that achieving these targets will be challenging without stronger consumer incentives and improvements in charging infrastructure.

BEVs accounted for only 16.5% of total UK new car sales last year, meaning manufacturers must aggressively promote EV sales in the coming months to avoid penalties.

While the increases are welcome, along with new levels of charge points across the UK, the public is hamstrung by the economic squeeze and ongoing worries about the switch from petrol and diesel to electric power.

A tax push

The SMMT expects a further surge in EV sales in March as buyers rush to take advantage of the new ‘25 plate and avoid upcoming tax increases.

From April 1, 2025, Vehicle Excise Duty (VED) changes will impose an Expensive Car Supplement (ECS) on BEVs priced above £40,000, adding £2,125 over six years.

This is the first time EVs will be subject to VED, and critics argue that these tax hikes could slow down adoption at a time when the UK government is pushing for greater EV uptake.

Beyond BEVs, hybrid sales also grew in February:

  • Plug-in hybrid vehicles (PHEVs) rose 19.3%
  • Hybrid electric vehicles (HEVs) increased 7.9%

Despite rising EV interest, overall new car registrations fell by 1% to 84,054 units in February, marking the fifth consecutive month of decline.

February is traditionally a quieter sales period—accounting for only 4% of annual volumes—but fleet and business registrations fell 3.8%.

However, what is promising is the rise in private registrations of new EVs, rising 4.6% and increasing their market share to 35.6%.

But it is generally fleet and commercial sales that hve te biggest effect on overall sales targhets, and the year-to-date figures show fleet and business registrations down 3.7%.

Industry concern

Tax and policy uncertainty could slow EV momentum further, according to industry leaders.

Mike Hawes, SMMT chief executive, acknowledged the positive EV growth but warned about potential roadblocks ahead: “Although February’s figures show a subdued overall market, the good news is that electric car uptake is increasing, albeit at huge cost to manufacturers in terms of market support.”

Hawes added: “With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand next month—but long-term, EV consumers need carrots, not ever more sticks.”

What’s more, uncertainty over the ZEV mandate and muture incentives continues to hamper attitudes.

Jamie Hamilton, automotive partner and head of EVs at Deloitte, believes demand for the ‘25 plate and ongoing incentives will boost sales in March, but warns that broader economic pressures could prove a drag:

“Successfully navigating the next phase of the ZEV mandate and beyond will require a coordinated approach—manufacturers, charging operators, finance providers, and Government bodies must work together to address remaining barriers to EV adoption.”

Jon Lawes, managing director at Novuna Vehicle Solutions, echoed concerns about tax changes impacting corporate EV adoption:

“From April, EVs will lose their exemption from vehicle excise duty, adding costs that could erode the tax advantages driving corporate adoption—particularly via salary sacrifice schemes.”

“With the 2030 ban on new petrol and diesel cars looming, concerns over future tax rises and geopolitical instability could strain supply chains, push prices higher, and dampen momentum just as the sector needs acceleration.”

Down the road

The UK’s transition to 100% zero-emission new car sales by 2035 remains on track but is facing increasing economic and policy-related headwinds.

While BEV sales are growing, tax increases, infrastructure concerns, and uncertainty over long-term incentives could slow adoption rates.

As manufacturers strive to meet strict ZEV mandate targets, the next 12 months will be critical for shaping the future of the UK automotive industry.

Industry leaders continue to call for clearer government policy, stronger incentives, and better charging infrastructure to ensure a smooth transition to zero-emission transport.