The number of EVs and PHEVs sold last year grew by 23pc and 11%, with a record 473,000 battery-powered and 225,000 Plug in hybrid cars sold overall in 2025, according to data from SMMT.
Reporting in the Telegraph, Charles Lester, from Benchmark, said sales had been boosted by government subsidies – like the EV grant scheme and the zero emission vehicle (ZEV) mandate – with manufacturers under pressure to hit electric car sale quotas to avoid fines.
He said: “A big driver of this is the ZEV mandate. But then, also towards the latter half of 2025, we saw battery electric vehicles added to the list of vehicles that can get a subsidy.”
Mr Lester added: “What we’re expecting in 2026 is for those subsidies to drive sales further.”
The rise comes despite fears that a 3p-per-mile tax on EVs announced by Rachel Reeves in November will put off potential buyers, with the Office for Budget Responsibility (OBR) estimating it would lead to 440,000 fewer sales in the next five years.
Mr Lester said there was no sign yet of an impact on sales from the pay-per-mile tax – which will come into force in 2028 – and Benchmark expected EV sales to be supported by other measures in 2026 for the time being.
These include a grant scheme, announced by Heidi Alexander, the Transport Secretary, in July, with cars such as the Nissan Leaf qualifying for a discount of up to £3,750.
Mr Lester said there was evidence to suggest the scheme had helped to increase sales in the final three months of 2025, with 183,000 EVs sold compared to 160,000 over the same period a year earlier.
