Over 30,000 New Electric Vehicles Hit UK Roads in May Amid Soaring Demand

Electric vehicle (EV) momentum in the UK showed no signs of slowing in May, with battery electric car registrations surging nearly 26% year-on-year, a bright spot in a car market still recovering from the aftershocks of the pandemic. But while this growth paints a promising picture for light-duty vehicle electrification, the heavy goods vehicle (HGV) sector remains firmly entrenched in fossil fuel territory.

According to the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicles accounted for 25.8% more registrations in May 2025 compared to the same month last year, securing almost 22% of the total market share. Hybrids and plug-in hybrids also gained traction, growing by 6.8% and a striking 50.7%, respectively.

This collective uptick helped push total vehicle registrations into positive year-on-year territory, a rare feat in today’s inflation-strapped market. Meanwhile, registrations for new petrol and diesel vehicles continued their downward trend, falling 12.5% and 15.5%, respectively.

But beneath the surface of this electric surge is a market dynamic teetering on policy pressure. “The current trajectory cannot be sustained indefinitely,” warned SMMT CEO Mike Hawes. Carmakers are aggressively discounting electric vehicles (EVs) and hybrids to meet targets set by the Zero-Emission Vehicle (ZEV) Mandate while also trying to court price-sensitive consumers.

The ZEV Mandate, a central pillar of the UK's 2030 ban on new petrol and diesel vehicle sales, compels manufacturers to ensure that a rising share of their new vehicles are zero-emission. By 2025, 28% of new cars and 16% of new vans must be electric vehicles (EVs). Those who miss their targets must buy credits from compliant rivals or face stiff fines. However, thanks to flexibilities like credit trading and partial allowances for hybrids, the effective quota will be somewhat lower.

Hawes and the SMMT are calling for stronger government backing on the demand side. Proposed reforms include:

• Equal VAT rates for public and home charging

• Removal of the Expensive Car Supplement for EVs

• A 50% VAT reduction on new electric car purchases

Currently, no upfront incentives exist for electric car buyers in the UK following the discontinuation of the Plug-in Car Grant. Some grants, for electric vans, taxis, motorbikes, and wheelchair-accessible vehicles, will remain in place until 2026. Still, the market is left asking: Is that enough?

Interestingly, the EV boost is primarily coming from businesses and fleets rather than individual motorists. While private EV registrations dipped by 2.3%, business and fleet registrations rose by 14.4% and 3.7%, respectively.

This underscores a key divide in the market: businesses, often cushioned by subsidies or operational mandates, are leaning toward EV adoption. Everyday drivers? Not so much, especially with affordability and charging still posing barriers.

But it’s in the heavy goods vehicle (HGV) space where the decarbonisation challenge grows heavier, both figuratively and literally.

New findings from the Road Haulage Association (RHA) show that:

• 70% of HGV operators

• 75% of coach operators

• 56% of van operators

•  have no current plans to adopt zero-emission vehicles.

The reasons? No mystery here:

• Upfront costs remain prohibitively high

• Technological readiness, especially battery range for long-haul routes, still lags behind

• Charging infrastructure for large vehicles is limited or nonexistent in many areas

The RHA is urging the UK Government to provide unequivocal support for alternative fuels during the transition, alongside financial instruments such as residual value guarantees and credit risk protection, to give fleet operators the confidence to invest.

Managing Director Richard Smith cautioned that without immediate action, the government’s 2035 ban on new diesel HGVs under 26 tonnes and the 2040 ban on heavier models could slip from ambition into fiction.