The Rise of BEVs and PHEVs in the UK
The UK government’s commitment to achieving net-zero emissions and the impending Zero Emission Vehicle (ZEV) Mandate are pivotal factors influencing the rise of BEVs and PHEVs. This mandate, which is currently under consultation, will require a significant percentage of new car sales to be zero-emission vehicles from 2024 onwards. The market outlook suggests that despite a slight 0.2% dip in total car registrations to 1.949 million units in 2025, BEVs and PHEVs will continue their growth trajectory.
BEV Market Developments
BEV sales are projected to increase by 21.4% in 2025 to 462.000 units, securing a 23.7% market share, up from previous estimates of 23.4%. This growth is attributed to:
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Expanding charging infrastructure: Government and private sector investments are enhancing accessibility and reducing range anxiety.
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Declining battery costs: Advances in technology and production efficiency are making BEVs more affordable.
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Consumer incentives: Financial support, such as tax reductions and grants, continues to encourage adoption.
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Improved model availability: Automakers are introducing a wider range of BEV models, appealing to different consumer needs.
By 2026, BEV market share is expected to reach 28.3%, with a 23.3% increase in volumes to 570.000 units. This indicates a continued shift towards fully electric mobility, reinforcing the UK’s commitment to sustainable transportation.
PHEV Market Outlook
While PHEVs do not match the growth pace of BEVs, they remain an essential bridge technology for consumers hesitant to switch to full electrification. PHEV registrations are forecasted to grow 18.4% in 2025 to 198.000 units, capturing 10.2% of the market. Key drivers of this growth include:
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Consumer preference for flexibility: PHEVs offer both electric and fuel-based driving, making them attractive for long-distance travel.
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Corporate fleet demand: Many businesses are transitioning their fleets to PHEVs as part of sustainability initiatives.
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Government policies: Tax incentives and emission regulations favoring low-emission vehicles support PHEV sales.
By 2026, PHEV market share will rise to 10.8%, with 9.9% growth in volumes to 218.000 units. This reflects steady but slower growth compared to BEVs.
Major factors that influence the adoption: Rapid Deployment Infrastructure, pricing, confidence consumers
While the trajectory for BEV and PHEV adoption looks promising, certain challenges must be addressed to sustain growth.
Infrastructure Expansion
A major factor influencing EV adoption is the availability of public and private charging stations. Although significant progress has been made, rural areas still face gaps in charging accessibility. Continued investment in fast-charging networks is crucial to eliminate range concerns.
Affordability and Incentives
The initial purchase cost of BEVs remains higher than petrol and diesel alternatives. However, with battery prices declining and government incentives in place, BEVs are becoming more cost-competitive. Policymakers need to ensure that subsidies remain available, particularly for lower-income buyers.
Consumer Awareness and Confidence
Many potential buyers still have concerns about battery life, charging times, and vehicle range. Automakers must continue educational campaigns to address these issues and build confidence in EV ownership.
Market Outlook UK EV Adoption for 2026 and Beyond, nearly 40% market share
The UK car market is expected to surpass two million units in 2026, marking the first time since 2019 that this milestone will be reached. While petrol and diesel vehicle sales continue to decline, with diesel market share dropping to 4.4% and petrol to 41.1%, BEVs and PHEVs will dominate future growth.
BEVs will account for 28.3% of all new registrations, equating to 570.000 units, reinforcing their position as the future of the automotive market. PHEVs will hold 10.8% market share, with 218.000 units, appealing to consumers who are not yet ready to transition to fully electric vehicles.
By 2026, nearly 40% of all new vehicles sold will be electrified, highlighting the momentum towards a greener future.
Now is the time to invest in electric mobility for businesses, fleet operators, and consumers. As technology advances and costs decline, the transition to zero-emission vehicles will become increasingly seamless. The next few years will be pivotal in determining the UK’s progress towards its net-zero ambitions.
