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Electric car discounts are unsustainable, says industry group

Manufacturers provided £5.5 billion in EV discounts last year to meet targets despite rising costs, prompting calls for a review of the zero-emission vehicle mandate.

  • Nearly 500,000 of the new cars sold were electric in 2025, according to the Society of Motor Manufacturers and Traders .
  • Electric car sales were still not increasing fast enough to meet official targets, the SMMT warned, with a growing gap between consumer demand and the government's ambitions.
  • The SMMT estimates that discounts worth thousands per electric vehicle were "unsustainable", amounting to more than £5bn last year.
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New car sales grew by 3.5% last year fuelled by surge in demand for EVs

Registrations of pure battery EVs were up 23.9% year-on-year, achieving a market share of 23.4%.

·London, United Kingdom
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The Independent broke the news in London, United Kingdom on Tuesday, January 6, 2026.
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