Electric car sales in the UK are set to rise to 440,000 in 2025, accounting for 24% of the projected 1.84 million new car sales, according to forecasts by EV leasing company DriveElectric.
This represents a notable 4.4% increase compared to 2024, where EVs made up 19.6% of new car registrations, yet it still misses the 2025 Zero Emission Vehicle (ZEV) mandate target of 28%.
The UK’s appetite for electric vehicles (EVs) continues to grow, but the forecast highlights a gap between industry progress and government targets.
DriveElectric points to several positive factors driving EV adoption, including the launch of smaller, more affordable models, reduced battery costs, and EVs reaching price parity with petrol cars.
New EV models boast longer driving ranges and faster charging capabilities, addressing the common concern of range anxiety.
The expansion of the UK’s charging network, particularly with more rapid and ultra-rapid chargers, is also encouraging more drivers to switch to electric.
Businesses and fleets benefit significantly from financial incentives such as low Benefit-in-Kind (BIK) tax rates, which remain at 2% until April 2025 before increasing incrementally to 5% by 2028.
Salary sacrifice schemes have further boosted EV affordability for employees, cutting monthly costs by up to 40%.
However, private motorists face a lack of comparable financial support, which continues to hinder retail EV sales.
DriveElectric’s 2025 sales forecast assumes a conservative overall car market projection, expecting manufacturers to limit petrol and diesel car sales to meet ZEV targets.
Tesla and a few other manufacturers specialising in EVs may hit or exceed the 28% target, but many traditional carmakers are likely to fall short due to limited EV model ranges.
Failure to meet the ZEV target could result in steep penalties, with fines of £15,000 per vehicle for any shortfall within the 28% ZEV allocation.
Despite the challenges, DriveElectric’s Partnerships Director Adam Kemp remains optimistic about progress, noting that 24% market penetration is still a significant step forward.
Kemp emphasises that while businesses and fleets are well-supported in their transition to EVs, private buyers need more incentives to accelerate the shift.
The government’s ongoing consultation on the 2030 ban on new petrol and diesel cars, as well as ZEV mandate flexibilities, is due to conclude by February 2025.
Electric vehicles remain a cornerstone of the UK’s net-zero strategy, offering lower running costs and cleaner air alongside their environmental benefits.
The superior driving experience of EVs compared to petrol and diesel cars is another key factor drawing motorists towards electric.
DriveElectric, a pioneer in EV leasing since 2008, continues to support businesses and individuals in adopting low-carbon transportation solutions.
As the UK edges closer to its climate goals, the road ahead will depend on broader support for all motorists, ensuring the transition to electric is both accessible and inclusive.
