Electric Vehicles represent approximately one quarter of new cars sold in the UK, and almost one fifth in Germany.
In the UK and Germany, the electric vehicle (EV) market is experiencing a significant surge, propelled by various factors beyond Tesla's influence.
The growth of EVs in these countries is primarily driven by regulatory pressure and CO2 limits. Both the UK and Germany are subject to stringent emission targets, which accelerate the transition to electric vehicles. For instance, the UK's Zero Emission Vehicle (ZEV) mandate encourages manufacturers to increase their EV offerings, while the EU's carbon emissions regulations push German automakers towards electric models to comply.
Another key factor is the introduction of affordable and versatile EV models. European markets have seen the arrival of more accessible EV options such as the BYD Dolphin, Renault 5, and Volkswagen ID.2, helping boost EV adoption among a broader consumer base.
The expansion of public charging infrastructure also plays a significant role. Europe has installed over 1 million public chargepoints, making EV ownership more convenient and practical for urban and rural drivers alike.
After a period of slowdown in 2024, the EV industry in the UK and Germany has rebounded strongly in 2025. Registrations of battery electric vehicles (BEVs) have surged, with the UK seeing a 22.8% increase in registrations in early 2025.
The impact of EV subsidies and incentives is also evident. Although Germany's abrupt removal of several subsidies in 2023 led to a temporary drop in BEV sales, previously generous incentives had played a crucial role in growing the market by making EVs more financially attractive.
Both countries are also seeing growth in plug-in hybrid electric vehicles (PHEVs) and hybrids, which help ease consumers into electrification and contribute to overall emissions reductions even if pure BEV adoption progresses at a slower pace.
The European automotive industry is responding to global competition, particularly from Chinese EV manufacturers, driving innovation and increasing the availability of diverse EV models in Germany and the UK markets.
In the UK, both the Tesla Model Y and Model 3 were among the top 10 models sold in June, with a combined total of 7,719 models sold, representing a 14% increase in market share for Tesla. Across the first six months of 2025, a total of 224,841 new BEVs were registered in the UK, up 34.6% compared to the same period in 2024. Sales of PHEVs in June 2025 saw a 66.4% increase, with 25,608 registrations and a 10% market share.
However, despite this growth, the UK is still significantly behind its mandated 28% market share for BEVs by 2025. In Germany, despite growth in BEV sales, the country is still falling behind its goal of putting 15 million BEVs on the country's roads by 2030.
It's worth noting that Joshua S. Hill, a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years, prefers to rely on his own feet as his preferred mode of transport.
References: [1] Society of Motor Manufacturers and Traders (SMMT). (2025). Q2 2025 UK Automotive Market Report. [online] Available at: https://www.smmt.co.uk/vehicle-data/registrations/quarterly-registrations/quarter-2-2025/
[2] German Federal Motor Transport Authority (KBA). (2025). Monthly Statistics: June 2025. [online] Available at: https://www.kba.de/EN/Home/Statistics/Statistics/Motor-vehicles/New-vehicles/Pages/default.aspx
[3] European Automobile Manufacturers' Association (ACEA). (2025). European Passenger Car Registrations in June 2025. [online] Available at: https://www.acea.be/fileadmin/user_upload/documents/Publications/Press_releases/2025/ACEA_Passenger_Car_Registrations_June_2025.pdf
- The surge in the electric vehicle (EV) market in the UK and Germany is propelled by regulatory pressure and CO2 limits, with the UK's Zero Emission Vehicle (ZEV) mandate and EU's carbon emissions regulations encouraging automakers to transition towards electric models.
- European markets have seen an influx of affordable and versatile EV models, such as the BYD Dolphin, Renault 5, and Volkswagen ID.2, which have helped boost EV adoption among a broader consumer base.
- The European automotive industry is responding to global competition, particularly from Chinese EV manufacturers, resulting in an increase in the availability of diverse EV models in Germany and the UK markets.
- Despite growth in EV sales, both the UK and Germany are struggling to meet their mandated market share for BEVs by 2025, with the UK still significantly behind its 28% target and Germany falling short of its goal of having 15 million BEVs on its roads by 2030.
