Tue, 06 Jan 2026

Tue, 06 Jan 2026 Electric car discounts are 'unsustainable' as sales climb, car group warns

The SMMT warned of a growing gap between consumer demand and the government's ambitions on EVs.
The UK saw its highest number of new car registrations since the pandemic, with over 2 million vehicles sold in 2025. However, the growth comes at a cost, as manufacturers are offering unsustainable discounts on electric vehicles to meet government targets. The Society of Motor Manufacturers and Traders (SMMT) warned that the current level of subsidies is not sustainable, especially with new, more stringent targets set for this year. Electric car sales rose by 23.4%, but still fell short of the government's goal of 28%. Car manufacturers are having to offer discounts worth over £5 billion, or £11,000 per vehicle, to meet demand. The SMMT is calling on the government to review its Zero Emission Vehicles Mandate (ZEV Mandate) and consider factors such as increased energy prices and raw material costs.
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