EV Sales Are Up 60% And More Than 40% Of New Cars Now Have A Plug. So Why Is Policy Pulling It Back?

The SMMT’s April registrations data told two stories at once. The industry body used the numbers to argue that the Zero Emission Vehicle Mandate is too aggressive and needs an urgent review. But the numbers themselves painted a different picture: battery electric vehicle registrations grew 59.1% year on year, plug-in hybrids rose 46.4%, and more than four in ten new cars registered last month had a plug.

The UK new car market grew 24% in April to 149,247 registrations, the best April since 2019. Battery electric vehicles took 26.2% of the market. Plug-in hybrids hit 13.8%. Conventional hybrids accounted for 13.2%. Petrol, diesel and non-plug hybrids all lost market share while EVs and PHEVs gained. The two millionth electric car was registered during the month, a milestone that would have seemed distant just a few years ago.

The growth is not happening in isolation. Since oil prices surged in late February following developments around Iran, consumer interest in electric vehicles has accelerated sharply. Renault reported a 42% increase in EV enquiries on its UK website, and its electric models accounted for nearly half of all its April registrations. The pattern is consistent across brands: when fuel prices rise, buyers look for alternatives, and for the first time in a fuel price spike, there are genuine alternatives available at prices ordinary drivers can afford.

Against that backdrop, not everyone in the industry agrees that the mandate needs weakening. Stuart Masson, Editorial Director of The Car Expert, argues that the data shows demand is accelerating and that government policy should be supporting it rather than pulling it back.

The Case For Supporting Demand, Not Slowing It Down

“April’s UK new car registration numbers show a clear shift in the market, with strong growth in both electric vehicles and plug-in hybrids continuing a trend seen across most Western countries,” Masson said.

“EV registrations were up almost 60% on the same month last year, dramatically outperforming the overall market, which itself grew by 24%. That momentum makes it increasingly difficult to justify calls from the Society of Motor Manufacturers and Traders to weaken Zero Emission Vehicle mandate targets at a time when consumer demand is clearly accelerating. The priority now should be supporting that demand, not slowing it down.

“One of the most immediate steps the government could take would be to reduce VAT on public charging from 20% to 5%, particularly in light of the recent tax tribunal ruling. Delaying the proposed pay-per-mile tax on EVs would also help remove hesitation among potential buyers, while continued investment in charging infrastructure remains critical.”

The VAT point is one that affects every EV driver who relies on public charging. Electricity used at home attracts 5% VAT, but the same electricity delivered through a public charger is taxed at 20%. For drivers without a driveway or home charger, that four-fold difference in tax rate makes public charging significantly more expensive and undermines one of the core financial arguments for switching to electric.

The pay-per-mile tax, formally known as Electric Vehicle Excise Duty or eVED, is due to come into force in April 2028 at a rate of 3p per mile for fully electric vehicles and 1.5p per mile for plug-in hybrids. Industry groups have already warned that the policy could cost the economy up to £4.8 billion if it triggers a decline in EV sales similar to what was seen in Iceland and New Zealand after those countries introduced comparable levies.

Plug-In Hybrids And The Shift Away From Petrol

Masson highlighted the performance of plug-in hybrids as a sign of how the market is changing at every level, not just at the fully electric end.

“Plug-in hybrids also continued their resurgence, rising 46% year-on-year and, for what I believe is the first time, overtaking basic hybrids that don’t require a plug,” he said. “More than 40% of all new cars registered in April had a plug, marking a significant milestone for the market.

“At the same time, petrol, diesel and conventional hybrids all lost market share, while EVs and plug-in hybrids made notable gains. While the overall market growth of 24% looks strong, it’s worth noting that April last year was a particularly weak month, down 10% on the year before, which does flatter the comparison slightly.”

That caveat is worth keeping in mind. Last April was artificially depressed because buyers pulled purchases forward into March 2025 to avoid incoming VED changes on electric vehicles. The 24% growth and the 59.1% EV increase are partly a correction from that low base rather than a pure measure of organic demand.

Even so, the direction of travel is clear. The proportion of new cars with a plug has crossed 40% for the first time, and the share going to pure petrol and diesel continues to shrink.

Fuel Prices, Iran And The Consumer Response

Masson argued that what separates this fuel price spike from previous ones is that drivers now have a genuine alternative to absorbing the cost.

“EV market share now sits at 26%, broadly in line with expected ZEV mandate targets once allowances are taken into account,” he said. “What’s different this time compared to previous fuel price spikes is that consumers now have a genuine alternative. In the past, drivers had little choice but to absorb rising fuel costs. Today, they can switch, and we’re seeing that happen in real time. Since Donald Trump’s recent actions in relation to Iran drove fuel prices higher, demand has shifted accordingly towards EVs and plug-in hybrids.

“With fuel prices likely to remain elevated through the summer and beyond, EV demand is only set to increase further. Consumer behaviour is already moving away from petrol and diesel, and policy now needs to align with that reality.

“Ultimately, customer demand will drive EV adoption faster and more sustainably than any mandate. That demand is already here, and the government’s role should be to support it, not get in the way.”

Two Views Of The Same Data

The contrast between the SMMT’s interpretation and Masson’s is striking. Both are looking at the same April figures. The SMMT sees a market that is growing but still falling short of the mandate, with the gap threatening manufacturer competitiveness and consumer choice. Masson sees a market where demand is accelerating naturally and policy risks undermining that momentum.

For drivers, the practical takeaway from both positions is the same. Electric cars are selling in record numbers. Manufacturer discounts and government grants are keeping prices competitive. And the broader direction, whether the mandate stays at its current level or is revised downward, is towards more electric vehicles on UK roads every year.

The debate is not about whether the transition is happening. It is about whether the government should push harder, ease off, or simply stop getting in the way and let the market finish the job.

Sources:

• The Car Expert
• SMMT, new car registrations April 2026
• The UK government is planning the biggest shake-up of driving laws in years