Registrations of new cars fell by 5% last month, preliminary figures suggest.
Approximately 140,000 new cars were registered in July, compared with 147,517 during the same month in 2024.
Battery electric vehicles (Bevs) held a 21% share of the new car market last month.
The Society of Motor Manufacturers and Traders (SMMT), which released the preliminary figures, slightly upgraded its forecast for full-year new car registrations, to 1.9 million.
Registrations in 2024 reached 1.95 million.
Bevs are forecast to hold a full-year market share of 23.8%.
At least 28% of new cars sold by each manufacturer in the UK this year are required to be zero emission – which generally means pure electric – under the Government’s zero emission vehicle mandate.
The first electric car models eligible for new Government grants were announced on Tuesday.
Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars.
These are the first models approved under the new £650 million electric car grant.
The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle’s sustainability.
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a “much-needed boost” for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader.
But the unveiling of the initiative on July 14 explains why it was a “slow” month for sales as buyers “wait to see just which models will get what level of grant”.
He added that discounts – either through the grant or by brands cutting prices themselves – will “trickle through to EV sales in the coming months”.
Final figures for July’s new car registrations will be published at 9am.
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