By ROB HULL
Registrations of electric cars surged by a significant 25.8 per cent last month - yet auto makers are still lagging behind mandated EV sales targets, the latest industry statistics show.
May saw a return to growth for the wider car market, with a 1.6 per cent increase in motors entering the road as 150,000 passenger vehicles were registered in the month.
It is only the second month of growth recorded so far in 2025 - and the best May for sales performance since 2021.
The data shows that one in five of the 25-plate cars delivered are fully electric, with Chinese brands including BYD and Omoda driving demand, industry insiders said.
Yet car makers remain well short of binding EV sales thresholds for 2025 that could see them fined for not adhering to Government-enforced targets.
The Society of Motor Manufacturers and Traders (SMMT) said this is despite manufacturers providing huge discounts of new EVs that are 'unsustainable' going forward.
One in five new car deliveries last month were electric vehicles, with Chinese brands including BYD and Omoda driving growth
The trade body representing Britain's car makers said the jump in EV sales comes against a backdrop of 'brittle consumer confidence and economic turbulence' that is impacting the wider sector.
This triggered double-digit declines in deliveries of both petrol and diesel cars last month – down 12.5 per cent and 15.5 per cent respectively in May.
However, electrified models - which make up a smaller volume of registrations - increased dramatically.
Uptake of conventional, self-charging hybrids (HEVs) grew 6.8 per cent to 20,351 units, while plug-in hybrid (PHEV) registrations were up more than half (50.8 per cent) to 17,898 vehicles.
And the 32,738 battery electric cars (BEVs) registered means 21.8 per cent of new models entering the road last month produce zero tailpipe emissions.
AutoTrader says the launch of less expensive new EVs and the emergence of Chinese brands is what is pushing battery car registrations higher.
Ian Plummer, commercial director at the car sales platform, told us: 'Electric demand is being driven by new affordable models like the Renault 5 and the Hyundai Inster [both costing from around £23k], along with fast growing Chinese brands like BYD and Omoda-Jaecoo, which will be key to mass market adoption.'
BYD registrations jumped fivefold year-on-year, from 596 units in May 2024 to 3,025 cars last month, outselling established mainstream brands like Mini, Mazda and Dacia.
It also outperformed Tesla.
Musk's car maker saw a 36 per cent decline from 3,152 registrations a year ago to 2,016 units sold in May 2025.
May saw a return to growth for the wider car market, with a 1.6% increase in motors entering the road as 150k passenger vehicles were registered in the month - the best May on record since 2021
While petrol and diesel sales recorded double-figure declines in May, battery electric (BEV) and plug-in hybrid vehicle (PHEV) registrations grew dramatically
BYD registrations jumped fivefold year-on-year, from 596 units in May 2024 to 3,025 cars last month, outselling established mainstream brands like Mini, Mazda and Dacia. It also outperformed Tesla
Tesla saw another fall in UK registrations last month. A spokesperson for the US brand said the downturn seen in April and May was due to the awaited arrival of the new Model Y (pictured)
A spokesperson for the US EV giant told This is Money that sales had slipped in both April and May due to deliveries being limited by a 'ramp-up in production of the Model Y,' which is manufactured at its Berlin factory.
'In early 2025, production of the Model Y was paused to facilitate the transition to the new Model Y which has since started ramping up in production and launched in the UK in limited capacity,' they said.
'During this transition, the UK sold-out all its legacy Model Y orders in the country. This is why we saw a year-over-year increase in sales throughout the early months of 2025 as demand persisted whilst we still had Model Y available to register.
'Since then, we have been comfortably taking orders from customers awaiting the delivery and registration of their new Model Y.'
The Tesla representative added: 'We look forward to meeting this demand in June when we expect to continue delivering our cars in volume once again with an increase expected year-on-year for June registrations.'
Jaecoo and Omoda respectively sold 1,679 and 1,492 units last month - that is more than Honda, Porsche, Citroen and Polestar, showcasing the increasing demand for Chinese makes in Britain.
Chinese electric newcomer Omoda sold 1,492 cars in the UK last year - more than mainstream marques such as Honda, Porsche, Citroen and Polestar. It showcases the dramatic impact of East Asian brands that are increasingly establishing themselves in Britain
EV sales still short of ZEV mandate
Despite an impressive performance in May, the 21.8 per cent share of EV registrations is still more than six percentage points shy of the 28 per cent target for 2025 set out by the Government's Zero Emission Vehicle (ZEV) mandate.
Failure to adhere to this target can result in fines of £12,000 per ZEV short of the 28 per cent threshold.
The SMMT said manufacturers continue to 'significantly discounting' new models, though warned this is 'unsustainable for a sector already facing multiple cost pressures'.
With no sign of headwinds easing, it said government must match industry commitment to increase EV sales with fresh fiscal incentives, including slashing VAT on new models.
Mike Hawes, SMMT chief executive, said: 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles.
'This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport.'
He added that next week’s Spending Review is the opportunity for government to 'double down' on its commitments to Net Zero by introducing new measures to help bolster EV uptake.
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