The UK’s new car market grew by 11.7% in July compared with the same month last year, new figures show.
Some 156,571 new cars were registered last month, the Society of Motor Manufacturers and Traders (SMMT) said.
This was the best July performance since 2019.
The SMMT said the uplift marks the eighth consecutive month of year-on-year growth.
July’s increase in registrations was driven by the strong uptake of electrified vehicles.
Registrations of pure battery electric new cars were up 44.5% compared with July 2025, which saw demand subdued ahead of incoming grants.
This was attributed to a wide choice of models, Government purchase incentives and heavy discounting by manufacturers.
SMMT chief executive Mike Hawes said: “July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility.
“But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties.
“The sector’s commitment to decarbonisation is not in doubt but its ability to remain viable – and attract investment for an EV future – is under intense pressure.
“We need urgent reform of the regulation, else Britain risks undermining its competitiveness and the jobs and livelihoods that depend on this industry.”