Automotive market update - August: EVs surge ahead

Welcome to the first in our new series of monthly market insight articles, where we’ll provide a snapshot of what’s happening in the UK automotive market. Each month, we’ll highlight key industry updates and trends, including electric vehicle adoption, plus our vehicle leasing insights.

August market summary

August is typically a quieter month for the automotive industry, and 2025 followed that trend. New car registrations dipped 2% compared with August 2024, equating to 82,908 units.

However, it was a stand-out month for battery electric vehicles (BEVs). According to the Society of Motor Traders and Manufacturers (SMMT), EVs achieved a 26.5% market share - the highest of the year so far. Growth was supported by manufacturer discounting and the recent introduction of the Electric Car Grant. At Gateway2Lease we also saw momentum build, with EV enquiries up 18% compared with July.

Electric Car Grant update

The Electric Car Grant, introduced by the UK government in July to make EVs more accessible, got underway in August. To date, 35 vehicles have been approved for the scheme. At the end of August, the government also introduced a new £42,000 price cap for qualifying models, an update to the initial eligibility criteria. The latest list of grant eligible EVs can be found on the dedicated Gov.UK page.

New car registration trends by fuel type

Battery electric vehicle (BEV) new car registrations were up almost 15% compared with August 2024, only beaten by Plug-in hybrid vehicle (PHEV) registrations which were up 69% but represent a smaller market share.

Source: SMMT

New vehicle registrations were primarily driven by fleet uptake which equated to 59% of all new registrations.

Best selling cars in August

Analysis from the SMMT, shows that the Ford Puma took the top spot in August and also tops the year-to-date best selling model table with a current total of 33,221 sold in 2025. The Puma Gen-E, and Ford’s E-Tourneo Courier, are the first two vehicles to qualify for the full band 1 Electric Car Grant discount of £3,750, read more here.

The UK’s top 5 models in August

1. Ford Puma
2. Kia Sportage
3. Tesla Model Y
4. Tesla Model 3
5. Volkswagen Tiguan

Source: SMMT

Gateway2Lease’s top 5 ordered models in August

1. Renault Scenic
2. MG HS
3. Tesla Model 3
4. Volvo XC60
5. Tesla Model Y

Looking ahead to September

The upcoming ‘75’ number plate change makes September a key month for new car registrations and will be critical for delivering the BEV growth required by the ZEV mandate. With the new Electric Car Grant underway and growing EV model availability, we’re expecting to see continued strong electric vehicle uptake.