For the second consecutive month, battery electric vehicle (BEVs) sales have outpaced the ZEV mandate trajectory – with New Automotive warning that any meddling with the policy would lead to households paying the price.
The latest figures from the independent UK transport research organisation show that the UK’s transition to zero-emissions driving maintained its momentum in July, with BEVs taking 27.4% of the new car market. Registrations rose by almost 50% compared with July 2025, making BEVs the fastest-growing segment in an expanding market.
The news comes against a backdrop of fresh calls from the Society of Motor Manufacturers and Traders (SMMT) for a review of the ZEV Mandate, following figures that UK vehicle production fell 7.5% in the first half of 2026.
It said that despite electric vehicles (EV) representing four in 10 cars built in the first half of the year, output for the segment was 8.6% down on last year.
The SMMT said it was “urging rapid implementation of the Modern Industrial Strategy”, in particular, on industrial electricity prices, and that “ZEV Mandate reform is also vital”.
According to New Automotive, a total of 43,547 new BEVs were registered in July, up from 29,226 a year earlier. BEVs drove growth in the wider market, which increased by 15.6%, while petrol and diesel registrations continued to decline. So far this year, more than 336,000 electric cars have joined UK roads, with BEVs accounting for a quarter of all new car registrations.
For the second consecutive month, BEV sales have outpaced the ZEV mandate trajectory, increasing the surplus of credits available in the system and helping to reduce compliance costs for manufacturers still behind their targets. New AutoMotive estimates the effective 2026 market-wide target, after accounting for scheme flexibilities, at 24.6%, compared with a year-to-date BEV share of 25.3%.
Under the ZEV Mandate, manufacturers are required to ensure that 33% of new car sales are zero-emission in 2026. However, when scheme flexibilities such as credit trading and other compliance mechanisms are taken into account, New Automotive estimates the effective market-wide trajectory at 24.6%. With BEVs accounting for 25.3% of registrations so far this year and 27.4% in July, the market is currently ahead of that adjusted trajectory.
Electric vans also had a standout month, with 4,260 registered in July, representing a 15.1% market share and growth of almost 70% compared with July 2025. It was the third strongest month on record for BEV vans, and the strongest outside the bumper plate-change months of March and September.
Ben Nelmes, CEO at New AutoMotive, said:
“It is fantastic to see such good growth in every postcode – in electric car registrations. We can expect celebrations in Downing Street, because electric cars are the single best way to reduce household energy costs.
“Growing numbers of people are seeing electric cars as a way out of the cost of living crisis. Thanks to the UK’s Zero Emissions Vehicle mandate, there are more models to choose from, at competitive prices, making electric cars a realistic option for millions of motorists. This progress is not guaranteed, and if Ministers meddle with this policy it will be households who pay the price.”
Tanya Sinclair, CEO of Electric Vehicles UK, said:
“These are exactly the sales figures we benefit from when there is steady, consistent policy. Manufacturers bring more electric models to market, consumers respond by buying. And once again the industry is outperforming the trajectory required by the ZEV Mandate. The focus now should be on improving drivers’ lives with their EVs – like closing the inequality in the price of charging that this government has just worsened with its VAT cut to home electricity.”
John Lewis, CEO of char.gy, said:
“A growing surplus of ZEV Mandate credits is a good problem to have, but it only holds up if charging keeps pace with sales. Every new BEV registered in a city street or terrace house is a reminder of why accessible, on-street charging matters as much as the rapid network.”
Gurjeet Grewal, CEO, Octopus Electric Vehicles:
“A second consecutive month above the ZEV Mandate trajectory shows the UK’s EV market is building real momentum. It’s particularly encouraging to see more manufacturers approaching 50% electric sales. Those embracing the transition are proving that when the products and pricing are right, drivers respond.
“Now we need to keep working with manufacturers and dealer groups to give even more people the confidence to switch. If we get that right, we’ll attract more investment, create more jobs and cement the UK’s position as a leader in the transition to electric driving.”
Image courtesy of Green Car Guide.
