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The UK’s zero-emission vehicle (ZEV) mandate is scheduled for review. But with other countries amending their policies, will the UK’s targets be amended sooner, or later? Autovista24 special content editor Phil Curry reports on SMMT Electrified 2026. The UK automotive industry needs a review of the ZEV mandate, otherwise it could fall behind in the electrification race. That was the main message from the recent SMMT Electrified conference. Held in London’s QEII Centre, the event brought together automotive industry executives, regulators and suppliers. They discussed the current state of the UK’s electric vehicle (EV) market. The conference followed shifting emissions policies in Europe and the dropping of mandated targets in Canada. Meanwhile, the UK Government remains committed to the ZEV mandate. This is despite overall battery-electric vehicle (BEV) registrations failing to meet the 2024 or 2025 targets. The cost of reaching targets The ZEV mandate calls on carmakers to meet an increasing share target of zero-emission models in their annual registrations. It first came into effect in 2024, with a 22% requirement for passenger cars. This increased to 28% for 2025, while the target is 33% next year. This increases annually, reaching 80% by 2030. However, the biggest jump in the requirement comes between 2027 and 2028, with a 14 percentage point rise in the target, to 52%. The Department for Transport (DfT) released a report on the morning of the conference. It highlighted that all carmakers had complied with the ZEV mandate in 2024. Manufacturers had used conversion flexibility, while also borrowing future credits, with some banked for future years. However, SMMT chief executive Mike Hawes highlighted the costs that the industry faced in meeting ZEV mandate targets. ‘Non-compliance is not an option, but compliance comes at a massive cost,’ he told journalists, including Autovista24, during a press conference prior to the event. ‘In the first two years of the mandate, carmakers have spent up to £10 billion (€11.6 billion) in discounting on BEVs. That is in addition to the billions spent on new products, new technologies, and so forth. SMMT chief executive Mike Hawes ‘In 2025, the average discount on a BEV model was £11,000. However, the payment for non-compliance to the ZEV mandate is £12,000 per model. Compliance comes with a tremendous cost, either in incentives, fines, or the need to purchase trading credits. ‘Therefore, while the DfT report shows that carmakers have met the requirements of the mandate in 2024, compliance does not necessarily mean that the mandate is deliverable,’ he stated. Further ZEV mandate challenges One issue impacting BEV uptake appears to be costs for consumers. The technology has long been touted as a more affordable alternative to petrol and diesel in terms of use. However, there is often a cost difference between charging domestically and using public plug-in points. In addition, the implementation of vehicle excise duty (VED) last year increased costs. A pay-per-mile scheme, known as eVED, for BEVs and plug-in hybrids was also announced in 2026. This is set to be introduced in 2028, at a point when the ZEV mandate target is set to jump. For carmakers, this could be a problem. The affordability of BEVs will be reduced, but the requirement for carmakers will leap forward. ‘Additionally, the flexibilities introduced last year will expire from 2029,’ added Hawes. ‘I do not know of anyone in the industry who thinks we will get to 80% of ZEVs by 2030. Beyond that, we still have a lack of clarity. ‘We have neither the regulation nor the certainty about exactly which technologies can be sold. But what we do know is the gap between ambition and demand is too great. The UK's attractiveness, not just as a market, but as a manufacturing location, evaporates. De-carbonisation, if we get this wrong, can mean de-industrialisation.’ Good intentions of the ZEV mandate Hawes stated that the UK’s automotive industry is committed to reducing emissions and working towards net-zero. ‘But sometimes, to reach a destination, you have to take a diversion. When the facts change, you have to adapt,’ he continued. ‘When the ZEV mandate was conceived, the world was a different place,’ Hawes stated. In line with statistics published by the SMMT during the event, he outlined that battery costs were 30% higher in 2025 than anticipated in 2021. Meanwhile, BEVs were 17% more expensive within the same timeframe. In addition, industrial energy costs were 80% higher than expected, Hawes stated. The costs of public EV charging at 50kW points were 120% higher than thought when the ZEV mandate was first discussed, he added. ‘We need it reviewed now and resolved now. Without change, the sector, the economy, mobility and decarbonisation itself are in jeopardy. So, government needs to be bold enough to lead the change to make sure that we have a system that is fit for the future,’ he concluded. Carmakers back early review The ZEV mandate issue remained a constant throughout SMMT Electrified 2026. Carmakers in attendance also backed the need for a review of the current strategy. ‘The ZEV mandate needs to be more aligned to where consumer demand is. Investment is so heavy in the market, then some of the vehicles sold will be loss-making. If you are in that scenario, and you are forced to increase supply as the ZEV mandate does, then that calls investments into question,’ highlighted Eurig Druce, SVP, group managing director at Stellantis UK. ‘If you cannot make a return on investment in a country, then the ability of a company to invest and create the growth that the government is looking for is absent. Therefore, we need to make some quick decisions, and a review next year is too late. We need a review now, to help us make the right decisions on investments,’ he continued. From left to right: Patrick McGillycuddy, managing director at JLR UK, Richard Finchett, deputy managing director at Toyota Manufacturing UK, Nicole Melillo Shaw, Managing Director at Volvo Car UK, Eurig Druce, SVP, group managing director at Stellantis UK But while development of BEVs continues, the route of discounting is not one that carmakers want to be going down. ‘We put a lot of investment into developing and building the advanced technology in BEVs. The last thing anyone wants to do is bring out a car with that much investment, and then start discounting from the beginning. It is unsustainable. So I think we need to make sure that we are allowing for demand to catch up with supply,’ pointed out Nicole Melillo Shaw, managing director at Volvo Cars UK. A different approach Patrick McGillyCuddy, managing director at JLR UK, further underlined the issue of confusion among consumers. ‘We have a very ambitious ZEV mandate, and then we have the eVED, which is proposed to come at a critical time in that journey,’ he said. ‘This causes confusion, and consumers will hesitate. Then we hesitate, and you get an uncertain environment. We produce most of our vehicles in the UK for global export, therefore we have to recognise that different parts of the world are moving at a different pace,’ he added. Ford Motor Company chair and managing director, Lisa Brankin, also brought up the issue during a candid fireside chat. ‘When it comes to a review, the government needs to consider the customer in two areas. They need to knock down the barriers to entry, but also understand and prevent confusing messages. ‘Last year, for example, we had the launch of the Electric Car Grant incentive scheme. That helped drive sales forward. But a few months later, there was the announcement of eVED. The two messages did not align, so the government really needs to be mindful of what it is saying if the end goal is electrification,’ she said. Failure from success Brankin also highlighted how the ZEV mandate directed focus away from Ford’s achievements in 2025. Instead, it suggested failure in the company’s performance, she explained. From left to right: Lisa Brankin, chair and managing director, Ford Motor Company, Katie Derham, host and broadcaster ‘Our sales grew by 20% in 2025, which was a great success. But we count it as a failure as we got to just under 24% of the fleet being ZEVs, when the target in the mandate was 28%. We are moving in the right direction, but not meeting targets,’ she stated ‘We have invested heavily in our facilities in Europe to build EVs, but we are having to discount heavily to meet targets. We may also be forcing people into vehicles that maybe they do not necessarily want, or maybe are not appropriate for them,’ she said. Brankin also pointed to the changes in other ZEV policies that have taken place around the world. ‘Canada has made a change, and our closest partners in the EU have already made adjustments. That was carried out in a matter of months rather than over a longer period. So, I would say to the UK government to get on with it, start the review, decide, and make the announcement this year,’ she continued. Government committed to 2027 ZEV mandate review Taking to the stage at SMMT Electrified 2026, Keir Mather MP, minister for Aviation, Maritime and Decarbonisation, spoke of the success of the UK’s EV market. He highlighted that the country had the largest BEV share of Europe’s major economies, as a result of ambition, partnership and investment. Autovista24 analysis shows that in 2025, the UK saw its BEV share reach 23.9%, with 473,348 units. While this share was higher than the 19.1% achieved in the closest market, Germany, the volume of BEVs was lower. In 2025, the country saw 545,142 units delivered. Mather also stated that the EV transition in the UK is being backed by tens of billions of pounds in public and private investment. But he acknowledged that the ZEV mandate is potentially a challenge for the industry. ‘Is [the ZEV mandate] ambitious? Yes, of course it is, and we as government are committed to giving you the tools you need to make it happen. The industry successfully complied with the 2024 target, using the flexibilities built into the mandate, and provisional 2025 data also looks promising,’ he commented. ‘We are committed to publish a review of the mandate early in 2027, and we are listening, and we are engaging with stakeholders across the industry.’ When asked about the potential for an early review, as called for throughout the conference, Mather stated: ‘Work on the review needs to begin this year. But early 2027, we feel, is the right point to make sure that we can see properly where the pressure points lie in this ZEV mandate and make sure that it continues to work for manufacturers.’

Which new battery-electric vehicle (BEV) and plug-in hybrid (PHEV) models recorded the greatest sales volumes in 2025? How did regional dynamics dictate the best-seller tables? Autovista24 editor Tom Geggus unpacks the data. Following two years of global new PHEV sales growth outpacing all-electric cars, 2025 saw BEVs surge ahead. With 13,697,372 units taking to roads around the world, the powertrain recorded year-on-year delivery growth of 26.7%. This is according to the latest data from EV Volumes. Meanwhile, PHEV deliveries slowed to an increase of 11.1%, down significantly from the 55.2% acceleration in 2024. Last year saw 7,217,499 plug-in hybrids making their way to customers. Much of this came down to China’s slowing PHEV market. The country was responsible for 70.3% of the powertrain’s sales, meaning declining results impacted the global market. In contrast, Spain saw triple-digit sales growth for the technology, but it made up a far smaller global share of just 1.8%. Between the two, the US made up 4.6% of the world’s PHEV market, with sales up 4.8%. Then came Germany with 62.5% growth and a 4.3% share. The UK had the fourth largest PHEV market, accounting for 3.1% of sales globally. The country saw deliveries increase by 34.5%.   The slowdown was highlighted by an increase in December’s global volumes of just 0.9%, as 758,073 sales were recorded. BEVs bounce ahead In contrast, China saw its BEV market pick up speed last year, with growth reaching 27.6%. Despite a smaller portion of global sales compared to PHEVs, it still dominated global deliveries at 59.1%. This was still far ahead of the next biggest market, the US, which saw sales fall by 3.9%. In total, 8.7% of all-electric car sales took place in the country. Given China’s slowing EV market and emissions regulation changes in the US, the dynamic of the global EV sector could shift in 2026 and beyond. Germany followed with 4% of the global BEV market as sales increased by 43%. The UK was 0.5 percentage points (pp) behind with a 3.5% share as sales increased by 24.2%. France saw all-electric sales increase by 13.6% as it made up 2.5% of all-electric deliveries. In December, BEVs managed a global increase of 12.4%, as 1,376,827 units made their way to customers. Best-selling BEV: Tesla Model Y The Tesla Model Y was the world’s best-selling BEV of 2025. With new variants and designs launched, it was the only electric vehicle (EV) to exceed the one-million delivery mark. In total, 1,085,521 units made their way to customers as it retained the market lead it has held since 2022. However, within an increasingly competitive space, the model saw its sales fall by 7.5% year on year. This meant its market share shrank from 10.9% in 2024 to 7.9% last year. Most of the Model Y’s sales in 2025 took place in China. Given the country’s greater EV market development, this should come as little surprise. However, the US was only 9.2pp behind, with 30% of the model’s overall sales taking place there. Behind these two formidable markets came South Korea, Turkey and Canada, representing 4.6%, 2.9% and 2.6% of the BEV’s sales. The Tesla Model Y was helped by a strong December. 129,650 units were sold in the month, boosted by its traditional quarterly reporting period. This was, however, 4.3% down year on year. Tesla takes second as China dominates The second-best-selling BEV last year had four things in common with the market leader. It was another Tesla, it saw updates in 2025, it retained its position from 2022 onwards, and its deliveries fell. The Tesla Model 3 saw sales decline by 5.5% to 499,685 units in 2025. This meant its market share dropped by 1.3pp to 3.6%. The Model 3 saw 40.1% of its sales take place in China. But once again, the US was only 9.1pp behind at 31%. The all-electric sedan saw positive uptake in the UK, with 3.1% of its deliveries occurring in the market. In December, the Model 3 placed second thanks to Tesla’s quarterly reporting. It achieved 55,198 sales, a 5.6% dip year on year. The Geely Geome Xingyuan, also known as the EX2 in some locations, ended the year in third. A relative newcomer in the BEV market, it first recorded sales in September 2024. It saw a marked increase of 800% to 473,948 units as its market share jumped by 3pp to 3.5%. While the Tesla Model Y and Model 3 each recorded sales across more than 75 markets, the Xingyuan contrasted heavily. It only posted deliveries in four markets, China, Brazil, Mauritius and Colombia. However, the latter three markets noted relatively minimal sales compared to China. It saw 99.5% if its sales take place domestically. The model is scheduled to enter major European markets in 2026. The Geome Xingyuan saw 43,185 sales in December alone, as it increased volumes by 161.9% year on year. This capped an impressive first full year on sale for the Chinese BEV. Eight Chinese BEVs in top 10 The Xingyuan began an avalanche of BEVs from Chinese carmakers. Eight of the top 10 in the best-sellers list came from the country. The Wuling Mini was fourth as it saw sales climb by 65.3% to 431,779 units. This gave it a market share of 3.2%, up from 2.4% in 2024. The BYD Seagull, also known as the Dolphin Surf in some markets, took fifth. However, its sales fell by 13.3% to 409,550 units. This took its share down by 1.4pp to 3%. The Xiaomi SU7 came sixth as its market share increased by 0.6pp to 1.9%. This was thanks to year-on-year sales growth of 85.3%, reaching 258,824 units. With a similar 84.2% rate of growth, the BYD Yuan Up, also known as the Atto 2, recorded 252,441 deliveries. Its share climbed by 0.5pp to 1.8%. The BYD Dolphin saw a 4.6% rise in sales to 227,352 units. Even though this was a better volume than in 2024, greater competition meant the BEV saw its market share shrink. It accounted for 1.7% of all BEV deliveries, down from 2%. The BYD Yuan Plus, also known as the Atto 3, saw sales decline by 33.7% to 225,133 units. This resulted in a 1.5pp decline in share to 1.6%. In 10th, the Xpeng M03 enjoyed a 264.7% sales increase to 177,150 units. Its grip on the market increased to 1.3% from 0.4% in 2024. Best-selling PHEV: BYD Song Plus While BYD was able to capture four of the top-10 best-selling BEV positions, it excelled in the PHEV market. In total, it claimed seven of the best-selling slots in the year, including first place. The best-selling PHEV in 2025 was the BYD Song Plus, known in some markets as the Seal U. This extended its winning streak, after it claimed the title in 2024. Last year it recorded 328,094 sales, taking 4.5% of the market. However, like the majority of BYD’s PHEVs in the top 10, it saw its deliveries fall compared with 2024. Its volumes declined by 9.8%, while its share was eroded by 1.1pp to 4.5%. At 50.8%, the Song Plus saw over half of its sales take place in China. Single-digit shares were recorded in 49 other markets. This included Turkey, Mexico, the UK and Brazil, accounting for 7.8%, 7.5%, 6.3% and 5.5% of its sales respectively. The end-of-year success came despite a fall in monthly performance. It ended December in fifth, with 22,226 units delivered, a 49.1% year-on-year decline. Qin Plus takes second In comparison, the Qin Plus was the second-most popular PHEV of 2025, but only recorded sales in 10 countries. China accounted for the vast majority of its deliveries at 96.2%. Globally, its volumes declined by 15.9% to 292,572 units. This meant it took a 4.1% market share, down 1.3pp. The model still topped the PHEV chart in December, thanks to 40,818 deliveries, a 30.1% increase compared to the same month in 2024. The BYD Song Pro took a marginally larger fall. Its share stumbled by 1.4pp to 3.2% as its sales decreased by 22% to 231,143 units. While China accounted for 78.2% of its sales, Brazil managed 10.5%, followed by Mexico at 4%. Highlighting the Song Pro’s struggles, it ended December in fourth, with its 24,070 sales down by 26.4%. The BYD Seal 6 took fourth in the global PHEV top 10 at the end of 2025. Its sales increase by 3.1% to 206,136 units. This made it one of two BYD models in the top 10 to achieve this positivity. However, this was not enough to stop its market share from slipping. It accounted for 2.9% of all PHEV sales last year, down from 3.1%. The first non-BYD model in the top 10 was the Li Auto L6 in fifth. It saw sales drop by 13.2% to 166,965, taking a 2.3% share, down 0.7pp. The BYD Qin L took sixth with a 2.3% grasp on the market. This reflected a drop of 1.2pp as sales slowed by 29.1% to 162,817 units. The BYD Destroyer 05 took seventh in 2025 even as its deliveries dropped by 32.7% to 150,677 units. Its share also took a downturn, hitting 2.1% from 3.4% in 2024. Share increases possible The top seven highest-performing PHEVs in the world all saw their grip on the market weaken in 2025. However, this was not the case throughout the top 10. After first recording sales in April 2025, the Aito M8 claimed a share of 2.1% with 148,934 deliveries. The BYD Song L came ninth, as its share increased to 2% from 1.9% in 2024. The model’s volumes increased by 16.8% to 142,301 units, the only other BYD to achieve this in 2025’s top 10. The Galaxy Starship 7, also known as the Starray, first recorded sales in November 2024. Across 2025, its deliveries soared by 512.8% to 126,461 units. This meant its market share climbed by 1.5pp to 1.8%. While the global PHEV market slowed in December, two models saw impressive performances in the last month of the year. The Fang Cheng Bao Tai 7 ended the month second in the PHEV table. It saw 34,086 sales, accounting for 4.5% of the global total. Meanwhile, the Aito M7 placed third with 26,468 deliveries. This was a 97.3% year-on-year improvement, the best result in the top 10. This gave it a 3.5% market share, up from 1.8% recorded a year prior.

The UK’s electric vehicle (EV) market is under pressure to perform in 2025. But how are new entrants and the introduction of the Electric Car Grant (ECG) helping to drive sales? Autovista24 special content editor Phil Curry examines the data. The UK’s EV market, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), is continuing to grow. Sales have benefited from new entrants and the reintroduction of incentives. In total, 522,489 EVs were sold in the country nine months into 2025, according to the latest data from EV Volumes. This equated to a 32.2% increase year on year. Of the two powertrain technologies, BEVs were more popular, accounting for 66.9% of all plug-in deliveries in the UK. With 349,704 deliveries between January and September, the BEV market increased by 29.6% compared to the same period of 2024. Meanwhile, the PHEV sector recorded 172,785 sales, signalling a 37.7% improvement. BEVs are under pressure to perform in the UK at present. The zero-emission vehicle (ZEV) mandate requires 28% of a carmaker’s deliveries to be either BEV or hydrogen fuel-cell models. SMMT data revealed that BEVs only made up 22.1% of the UK’s entire new-car market three quarters into 2025. BYD leads new entrant boost Over the last few years, the UK has become an attractive prospect for new entrants to the European automotive market. Many of these brands are subject to EU import tariffs, with a focus on BEVs built in China. Of these new entrants, the most impressive performance came from BYD. Between January and September 2025, it sold the third-largest number of EVs in the UK, reaching 35,474 units. This was up 574.4% compared to the same period in 2024. The marque has been helped by its popularity in the plug-in hybrid market. Over the first three quarters of the year, the UK’s best-selling PHEV was the BYD Seal U, with 16,129 deliveries. It accounted for 9.3% of all PHEVs sold, leaving the industry stalwart, the VW Tiguan, in second. The rest of the carmaker’s tally came from the BEV market. While not placing in the annual top 10 chart after three quarters of the year, BYD did make inroads with the Sea Lion 7 in September. It was the sixth best-selling BEV in the month, moving 2,019 units. This was impressive for a model that only started deliveries in January, ending the month with a 2.8% market share. Jaecoo impresses as another new entrant Another impressive new entrant is Jaecoo. It only offered one model in the UK across the first nine months of 2025: the J7 PHEV. With deliveries first recorded in March 2025, it took third in the annual PHEV top 10 with 12,463 units. This puts it just 110 units behind the VW Tiguan, meaning it could end the year as the second-best-selling PHEV. September was the model’s best month on the market, with 4,855 deliveries, allowing it to take second. This meant the Jaecoo J7 held 12.6% of the PHEV market in the month. Alongside the BYD Seal U, it was one of two models to achieve a double-digit market share in September. However, Jaecoo’s reliance on one model over three quarters of 2025 did impact its position in the brand ranking. In September, the carmaker placed ninth. Yet this position could be boosted by the introduction of the Jaecoo 5 later this year. Jaecoo’s sister brand, Omoda, saw 6,154 sales between January and September, placing it 23rd in the brand chart. The carmaker has not fully focused on the EV market, with its Omoda 5 model offered with BEV or petrol powertrains. There are also other new entrants to the UK market that are still expanding their operations. These include Leapmotor, Chery, Xpeng and Geely. More brands mean more choice for consumers, something that can help spur the EV market forward. Incentivising the market In July 2025, the UK government announced the introduction of the Electric Car Grant. This incentive scheme sees up to £3,750 offered against the list price of a new BEV. This plan includes two tiers, with manufacturers required to nominate their passenger cars and light-commercial vehicles to be eligible. Models will either qualify for a discount of £3,750 (€4,299) or £1,500. The grant level is based on strict sustainability criteria. This includes the level of CO2 emitted during the production process, supply-chain emissions, and the use of renewable energy sources. Battery production emissions account for 70% of the criteria targets, with vehicle assembly emissions weighted at 30%, the RAC reports. The carbon intensity of the electricity grids where production takes place is also considered. Additionally, only BEVs with a list price of under £37,000 will be eligible. Currently, only three vehicles qualify for the maximum discount. These are the Ford Puma Gen-e, the Ford E-Tourneo Courrier, and the Citroën ë-C5 Aircross Long Range. Both Ford models were added to the list at the end of August, while the Citroën became eligible at the beginning of November. There are a further 38 models in the second tier, eligible for a £1,500 discount. Is the Electric Car Grant working? At first glance, it appears the ECG has had little impact on the UK’s BEV market. In September, the two best-selling models were the Tesla Model Y, with 4,273 units, and the Tesla Model 3, with 3,720 deliveries. The former lost volume compared to 2024, by 26.3%. However, the Model 3 jumped by 100.5% year on year. Yet the Ford Puma Gen-e was the third-best-selling BEV in September. This was the first full month of the model’s eligibility for the ECG discount. Having gone on sale in April 2025, the Puma Gen-e did not achieve more than 635 deliveries until September. On reaching this month, it achieved a volume of 3,144 units. The UK often sees a bounce in passenger car sales in September due to the plate-change effect. However, the Puma Gen-e achieved a month-on-month improvement of 1,383%. In comparison, the Ford Explorer saw an increase of 67.9%, while the Ford Capri achieved 109.6% growth. Therefore, it does seem that Ford has benefited from its BEV model being eligible for the full ECG discount. The only other ECG-approved model that made September’s top 10 BEV chart was the Skoda Elroq. Having come to market in January 2025, it saw 1,671 sales in the month, placing it eighth. This was its highest total of the year but was comparable with its 1,206 sales in March. So, it seems the model’s position is based more on the model’s popularity than its £1,500 grant. The rest of September’s top 10 BEV table was made up of models that are not eligible for the ECG. Therefore, it may be a while before the full effect of the grants becomes clear. Tesla domination continues Across the first nine months of 2025, the Tesla Model Y led the market with 18,310 sales. This gave it a 5.2% market share. Close behind was the Tesla Model 3, with 16,605 deliveries and a 4.7% hold of the all-electric total. The two US models have a commanding lead ahead of the third-placed Audi Q4 e-tron. This saw 11,087 sales in the nine-month period, for a 3.2% market share. In the PHEV market, behind the top three, the Ford Kuga placed fourth, some way behind the Jaecoo J7. With 8,305 sales, it achieved a 4.8% share of the total PHEV volume after three quarters of 2025. It was ahead of the MG eHS, which managed 5,739 deliveries and a 3.3% market share.

Latvia, Lithuania, and Estonia have all seen a notable electric vehicle (EV) uptake in recent years. What is behind this growth in the Baltics, and how bright is the future? Joanna Fabiszewska-Solares, market analyst at EV Volumes, examines the data with Autovista24 web editor James Roberts. While EV adoption, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), remains inconsistent across Europe, some markets are pushing forward. In Portugal, every third car registered in the country last year was an EV. In Norway, BEVs account for almost 92% of new car registrations in 2024, according to EV Volumes data. Three nations can be added to this trend: Latvia, Lithuania, and Estonia. Although not officially affiliated, they are strongly bonded through regional cooperation, historical ties, plus shared strategic and geopolitical interests. One further thing they share is recent, and significant, uptake in BEVs and PHEVs. In all three light-vehicle markets, accounting for passenger cars and light-commercial vehicles (LCVs), the EV share reached double digits. Underneath the apparent EV prosperity of these three geographically contiguous economies lies a complex set of circumstances. While Latvia and Lithuania are experiencing overall positive new-car sales spanning all powertrains, Estonia is seeing a more downbeat picture. The trio of markets needs to handle varying incentives, charging infrastructure challenges, and the forging of domestic energy independence. Latvia leading the way The second largest Baltic state in terms of population, at nearly 1.86 million, Latvia has developed a significant EV base. According to EV Volumes, between January and August, EVs accounted for 18.4% of the nation’s light-vehicle market. This meant 2,842 plug-in light vehicles were sold in the country in the eight months. This is compared to 1,156 at the same point last year, with a 10% share of the market. Between January and August this year, 1,076 BEVs took to Latvia’s roads, claiming a 7% market share. This was just 159 fewer than the 2024 total, which stood at 1,235, suggesting a new high will be achieved this year. 2023 set a high watermark for BEV sales in Latvia, in what was a strong year for the entire domestic automotive market. The powertrain achieved a 9.5% share of light-vehicle sales, with 1,800 units shifted. However, the following year saw a decline in BEV adoption as well as an overall fall in light-vehicle registrations. Weaker BEV sales in 2024 were largely the result of stricter EU-wide CO2 emission standards and impending 2025 emission targets. This contributed to a year-end push to sell internal-combustion engine (ICE) vehicles across many other EU countries, including Latvia. Underlining a pan-Baltic trend, PHEVs have enjoyed notable popularity in Latvia so far this year. Between January and August, the powertrain passed the 1,000-delivery mark for the first time, hitting 1,766 units. This is already up from 741 registered across 2024, with the powertrain achieving an 11.4% market share already this year. Incentives driving EV uptake in Latvia In 2023, EVs accounted for 11.6% of light vehicles taking to Latvia’s roads. This share remained stable at 11.5% in 2024, thanks mostly to an increased PHEV share. In isolation, the hybrid powertrain took a 2.1% share in 2023, then a 4.3% in 2024. Amid the wider new light-vehicle market falling by 9.5% in 2024, the BEV market share dropped 2.3 percentage points (pp) last year. Conversely, BEV deliveries fell from 1,800 in 2023 to 1,235 one year later. This year, major policy changes and increased availability of affordable models are supporting increased EV ownership. In April, the Latvian government raised the total funding support for EV and hybrid adoption by €11 million. This included EV purchase grants, setting subsidy levels at €4,500 for BEVs, and €2,250 for PHEVs. Coupled with this, falling interest rates have resulted in higher corporate purchases and leasing. This has driven total light-vehicle registrations upwards, despite inflationary pressure. Aligned with these incentives, BEVs, PHEVs, and hydrogen fuel-cell vehicles (FCEVs) remain exempt from registration tax. The policy amendments also increased the Operation Vehicle Tax (VEN) for internal-combustion engine (ICE) powered vehicles from January 2025. EV Volumes forecasts that EV sales in Latvia’s passenger car segment alone will grow by 27.5% in 2026. This will be driven by the availability of affordable EVs, as well as the tightening of EU-wide CO₂ regulations. Lithuania’s vibrant EV market So far this year, Lithuania, the largest of the Baltic states, has seen a similar PHEV-driven electrification trend to Latvia. Between January and August this year, the country saw 27,582 light vehicles registered. This puts it on course to meet last year’s total of 30,101 units. So, what percentage of these sales were attributable to plug-in hybrids? Between January and August this year, 2,532 PHEVs were registered in the country. This is already an increase of 77.1% on 2024’s total, which stood at 1,430. BEV registrations reached 1,616 deliveries in the first eight months of this year. This is on course to exceed 2024’s total of 1,720. However, this is likely to be below 2023’s record of 2,034 units. EV sales accounted for 15% of the Lithuanian light-vehicle market between January and August this year. This was up from 9.5% registered in the first eight months of 2024. EV growth has been mostly driven by increased PHEV registrations. The powertrain represented a 9.2% market share in the first eight months of this year, compared with just a 4.1% across the same period last year. Looking further back, EV registrations have surged since reaching 8.1% in 2022. EV sales in the passenger car segment are projected to continue growing. A year-on-year increase of 36.5% is expected by the end of 2025, according to EV Volumes. Varied EV incentives in Lithuania Since 2021, EV purchase subsidies have been available in Lithuania. These include €5,000 for individuals, as well as a €1,000 scrappage bonus, extending to €4,000 for companies. BEVs are also exempt from road tax until the end of 2025. From 2026, these vehicles will receive a 75% discount. Additionally, green tax reforms were introduced in January this year. This included the Corporate Income Tax Act (CIT), which is aimed at increasing taxable deductions for lower-emission vehicles. The sliding scale provides a maximum deduction of up to €75,000 for zero-emission vehicles (ZEVs). Like Latvia, Lithuania’s EV sector has also benefited from falling interest rates. A growing number of leasing and renewal contracts from rental companies has helped push EV registrations up too. When it comes to EV charging infrastructure, Lithuania leads the way in the Baltics. The country benefits from a higher density than Latvia and Estonia. According to EV Volumes, Lithuania has a total of 1,618 public EV charging locations. This is compared to 1,180 in Estonia and 1,172 in Latvia. Estonia’s complex EV landscape Compared with Latvia and Lithuania, Estonia’s new-car market is experiencing notable headwinds. While the three Baltic states all suffer from high inflation, Estonia possesses the second-highest rate in the EU at 6.2%. This factor is contributing to a decline in domestic new light-vehicle sales. According to EV Volumes data, between January and August 2025, total light vehicle sales fell by 39.6%. This equated to just 8,275 units taking to Estonia’s roads in the period. In particular, ICE sales have dramatically fallen since January. This increasing void has boosted the overall market share of EVs in the country, albeit compared with a low baseline. Although the longer-term forecast for relative EV growth is promising. However, in volume terms, EV sales in Estonia are declining. Between January and August this year, 1,262 EVs were registered. This is compared with 1,387 in the same period last year, representing a 9% decrease. However, the EV share of passenger cars in Estonia increased to 17.3%, compared to 10.2% at the same point last year. Estonia powertrain breakdown Across the first eight months of 2025, BEVs held a 7.1% share of the overall light-vehicle market. Meanwhile, PHEVs took a 10.2% slice. In 2024, EVs accounted for 9.7% of the overall market, which amounted to 2,454 units. This was up from 2022, when 1,995 new EVs were registered. Like fellow Baltic states, Estonia has rolled out incentives to boost EV uptake. The Motor Vehicle Tax Act was introduced in January. Like incentives in Latvia and Lithuania, it offers reduced vehicle tax for owners of EVs. According to EV Volumes forecasts, passenger car registrations in Estonia will increase moderately by 3.9% year-on-year in 2026. EVs are forecast to expand, supported by ongoing tax exemptions and the EU-wide tightening of CO₂ emission standards. As a result, BEV and PHEV numbers are expected to grow by 42.8% year-on-year.

Which battery-electric vehicle (BEV) and plug-in hybrid (PHEV) models drove worldwide sales in the first half of 2025? How have these electric vehicle (EV) markets evolved? Autovista24 editor Tom Geggus examines the latest data from EV Volumes. Worldwide sales of BEVs and PHEVs continued to grow in June, up 30.6% and 32.6% year on year, respectively. With a volume of 1,203,965 units, all-electric cars remained ahead of plug-in hybrids at 709,576 sales, according to EV Volumes data. This positive result continued 2025’s streak of monthly double-digit year-on-year delivery improvements for both technologies. Yet, BEVs have seen varied results. In January, the powertrain saw a slower rate of growth than PHEVs at 21%. This was followed by a surge of 55.6% in February. In the first half of 2025, this bumpy ride resulted in 6,053,860 BEV sales, up 34.5% year on year. This was a pronounced improvement on the 10.2% increase recorded at the same time in 2024. Meanwhile, PHEV deliveries grew by 33.9% in the first half of this year, with 3,481,281 sales recorded. This included 709,576 deliveries in June, which was a 32.6% year-on-year improvement. China drives BEV volumes China led the charge in plug-in vehicle sales during the first half of 2025. 57.8% of all BEVs sold worldwide were delivered in the country, up from 54.1% six months earlier. The next biggest market was the US, accounting for 9.4% of sales worldwide. This marked a decline from 12.4% recorded at the same point last year. Germany and the UK accounted for 4.1% and 3.7% of all-electric sales, respectively. France saw a drop from a 3.6% market share at the same point in 2024 to 2.5% in the first half of 2025. China accounted for an even larger slice of the global PHEV market between January and June. The country represented 70.7% of the powertrain’s deliveries, up by 1.2 percentage points (pp) year on year. The US made up 5.1% of sales, down 1pp from the first half of 2024. Germany accounted for 4% of the market, up 0.6pp year on year. The UK continued to represent 3.1% of all PHEV sales, while Spain’s share grew by 0.4pp to 1.6%. Best-selling BEVs worldwide In the first half of 2025, the best-selling BEV worldwide was the Tesla Model Y. The crossover recorded 469,143 sales, meaning it made up 7.7% of overall volumes. Two markets accounted for over two-thirds of these sales. China topped the charts, with 36.6% of all Model Y sales taking place in the country. It was closely followed by the US with 33.5%. Meanwhile, 3.3% of all the BEVs’ deliveries took place in South Korea, 3.1% in Canada and 2.6% in Turkey. With nearly half the market share of its sibling, the Tesla Model 3 came second in the first half of the year. It accounted for 3.8% of all global BEV sales, with 227,210 units delivered. Behind the two Tesla models, Chinese BEVs populated the rest of the top 10. A resurgent Geely Geome Xingyuan claimed third with 205,091 sales and a 3.4% market share. This was its highest position in the year-to-date table since February. This was the model’s highest position since February. It started the year well before dropping to fifth in April, then gaining positions again in May and June. BYD’s BEV block The Xingyuang overtook the BYD Seagull, also known as the Dolphin Surf in some countries, which dropped to fourth. It represented 3.3% of all BEV deliveries and recorded 200,079 sales. The Wuling Mini held on to fifth with 170,661 deliveries and 2.8% of the market. The Xiaomi SU7 followed in sixth. It made up 2.6% of all-electric sales with 155,821 units. The BYD Yuan Plus, known as the Atto 3 in select markets, finished seventh. It recorded 126,184 sales, taking a 2.1% market share. Its sibling, the BYD Yuan Up, also known as the Atto 2, followed close behind. It claimed a market share of 1.8% with 106,068 units. In ninth, the BYD Dolphin made up 1.6% of all BEV deliveries after moving 97,755 units. This meant four BYD models made it into the year-to-date top 10, a first for the carmaker this year. The Wuling Bingo fell to 10th, also claiming a market share of 1.6% with 94,602 deliveries. Bitter-sweet victory On the face of it, Tesla experienced a buoyant June. The carmaker’s quarterly boost allowed it to take back control of the top two. The Model Y recorded 133,629 sales, marking a year-on-year increase of 14%. Meanwhile, the Tesla Model 3 took back second place. However, its sales fell by 18.8% to 52,844 units. Both BEVs also saw their market share drop as competition intensified. The Model Y’s grip loosened by 1.6pp to 11.1%. The Model 3 fell from a 7.1% hold in June 2024 to 4.4% a year later. The Geely Geome Xingyuan finished the month in third, reaching 40,891 deliveries and capturing 3.4% of the market. In fourth, BYD Seagull saw its sales fall by 7.4% to 35,724 units. This meant it captured 3% of the market, down 1.2pp. The Wuling Mini finished in fifth with 26,113 units, an increase of 156.3%. Its grip on the global market tightened by 1.1pp to 2.2%. The BYD Dolphin saw its sales grow by 96.7% to 25,895 units. This meant it also represented 2.2% of all BEV sales in the month, up from 1.4% at the same point last year. BYD takes last three spots The Xiaomi SU7 claimed seventh as its deliveries grew by 62.6% to 23,252 units. Its share increased accordingly to 1.9% from its 1.6% market share recorded in June 2024. BYD took the last three spots in the top 10, with the BYD Yuan Plus in eighth. Its sales fell by 28.3% to 21,689 units. Its grip on the market also weakened, from 3.3% in June 2024 to 1.8% a year later. The BYD Yuan Up finished the month in ninth. Its deliveries increased by 94.4% to 16,332 units, meaning it took a 1.4% share, up from 0.9%. The BYD Sealion 7 came 10th, its sales soared by 207.5% to 15,970 units. This meant it represented 1.3% of the market, up 0.7pp.   Best-selling PHEVs worldwide The PHEV version of the BYD Song Plus, known as the Seal U in some markets, recorded 188,484 sales between January and June. This meant it led the global PHEV market, making up 5.4% of all PHEV sales. China accounted for 63.2% of the model’s total deliveries. Turkey was a distant second with a7.1% share, while Mexico represented 6.9% of overall volumes. The UK accounted for 4.6% of the model’s sales, followed by Italy with a 3.7% share. The Song Plus was the first of seven BYD models in the year-to-date PHEV top 10. With 127,353 units sold, the BYD Song Pro took second with a 3.7% share. Not far behind was the BYD Qin Plus with 3.3% of the market and 114,689 deliveries. Moving up a position, the BYD Seal 06 came fourth with a 3% hold and 103,045 sales. This meant the Li Auto L6 slipped to fifth, posting a 2.8% share and 96,419 sales. The BYD Qin L recorded 94,600 deliveries, taking 2.7% of the market. Moving up to seventh, the BYD Song L claimed a 2.2% share with 76,789 sales. The BYD Destroyer 05, also known as the Seal 5, climbed to eighth position, making up 2.1% total PHEV volumes. In total, 72,700 of these models were sold globally. Losing ground, the Galaxy Starship 7 fell from seventh in last month’s report to ninth. It recorded 70,918 deliveries and made up 2% of the market. Behind it, the Aito M9 moved up to 10th with 58,700 sales and a 1.7% share. Chinese PHEVs rule the roost The best-selling PHEV in June was the BYD Song Plus, which saw its sales increase by 25.6% to 35,767 units. However, with increasingly strong competition, its market share fell by 0.3pp to 5%. The BYD Qin Plus came second as its sales dropped by 29.4% to 25,818 units. Its share dropped accordingly, down from 6.8% in June 2024 to 3.6% 12 months later. The BYD Seal 06 was third with 23,783 deliveries, up 193.3% year on year. It captured 3.4% of the market, marking a rise of 1.9pp. The BYD Song Pro finished in fourth with 23,280 sales. Its market share fell to 3.3% from 4.4% in June 2024. The Aito M8 finished in fifth after recording 21,185 sales, giving it a 3% grip on the market. This is an impressive feat for the extended-range electric vehicle, as its first sales were recorded in April this year. The BYD Song L came sixth with 18,344 deliveries, making up 2.6% of the global PHEV market. BYD Destroyer 05 came next with a 2.5% market share, down from the 3.7% recorded 12 months prior. It saw 17,562 units sold in the month. With 16,536 sales, the Li Auto L6 finished eighth, down 30.7% year on year. This meant its market share slipped from 4.5% to 2.3%. The BYD Qin L suffered a similar fate in ninth. Down 9.5% to 16,304 deliveries, its grip on the market loosened from 3.4% to 2.3%. Finally, the only non-Chinese PHEV in the top 10 was the Volvo XC60. It posted 14,821 sales, as its market share increased by 0.8pp to 2.1%.