Rapid growth of electric cars in June's market, with Chinese manufacturers significantly expanding their market share within the UK auto industry.
The UK automotive market has shown a moderate overall growth in the first half of 2025, with total sales increasing by around 2.8%. However, the electric vehicle (EV) segment is struggling, experiencing a significant decline of 12.8%.
In the midst of this mixed performance, some manufacturers are thriving. Volkswagen remains the market leader, showing strong growth of +13.4% and holding the top brand position. Peugeot is one of the standout gainers, with sales surging by +34.9%, propelling it up seven positions in the brand rankings. Kia moved up one spot to third place with a solid growth of +3.8%, while Ford improved one rank to fourth place, growing +4.1% despite some model-specific declines. Opel and Hyundai have also seen small but positive increases in sales.
On the other hand, traditional German luxury brands BMW and Audi, along with Nissan, are facing challenges. BMW sales declined by -5.9%, causing it to fall to second place in the brand rankings. Audi saw a significant drop of -17.7%, resulting in a two-spot decrease in brand standings. Nissan also experienced a 13.5% decline, moving down two spots as well.
The EV sector in the UK is underperforming compared to broader European growth. Despite the general drop in EV sales, some models like the Hyundai Kona have gained traction, reaching record rankings within the UK market. However, the sharp losses in EV sales from major brands contribute to the overall decline in the segment, highlighting a gap in market adoption or competitive challenges for certain manufacturers.
In June 2021, the overall market experienced a boost, with a 6.7% increase in new car registrations compared to the previous month. One in four new cars bought in June was an electric car, and the demand for zero-emission models increased by 39.1%. Despite this growth, electric vehicle sales are still below mandated levels for the Government's zero emissions targets. Battery electric vehicle (BEV) sales rose 34.6% in June 2021, but the new car market was still below pre-Covid levels.
The growth in the new car market and EV sales is attributed to substantial industry support and slashed model pricing, according to the SMMT chief executive, Mike Hawes. Ford, for example, now has four EVs on sale in June 2021, up from just one a year ago. Other brands, such as Alfa Romeo, Jeep, and Polestar, showed significant growth in June 2021, while familiar car brands like Citroen, Audi, and Seat experienced significant declines.
In conclusion, while the overall UK market is showing signs of recovery, the EV sector is lagging behind. The mixed results highlight the need for continued support and innovation to drive the transition to zero-emission vehicles.
[1] Source: Society of Motor Manufacturers and Traders (SMMT) data [2] Source: Autocar magazine [3] Source: What Car? magazine data
Finance-savvy individuals might leverage the recent improvements in the UK automotive market, focusing on brands that are thriving, such as Peugeot and Kia, for potential investments.
Tech-savvy consumers may find it intriguing that the growth in electric vehicle sales, although not meeting the government's zero-emission targets, is accompanied by advancements in battery technology and the increasing number of electric vehicle models available from various manufacturers.
