UK new car sales hit best June since 2019 as EV sales grow, SMMT data shows

July 6 (Reuters) - British new car sales in June climbed 11.4% from year-ago levels to their strongest since 2019, with battery electric vehicles taking a record share of the market as consumer demand and choices grew, industry data showed on Monday.

New car registrations rose to 213,166 vehicles last month, the Society of Motor Manufacturers and Traders (SMMT) said, with battery electric vehicles (BEVs) accounting for 30% of sales, in line with data published by New Automotive on Friday.

EV sales have been supported by higher fuel prices following the Iran war, a wider choice of lower-cost models, government grants and manufacturer discounts. However, growth remains below the pace needed to meet the government's targets on the path to net zero.

Carmakers are rushing to meet Britain's annual electric vehicles targets but have warned the push is leading to heavy discounting and compliance costs, with tougher EU trade rules due from 2027 also adding to pressure.

"The unsustainable cost of compliance is making the UK an increasingly uncompetitive place to both sell and produce cars – putting investment at risk as other markets with less restrictive regulation become more attractive propositions," SMMT said in a statement.

Sales of BEVs stood at 25% for the year to date, with the government targeting 33% annually. SMMT said to meet that target, BEVs would need to account for more than 40% of new registrations in the rest of 2026.

New Automotive data showed on Friday that new car sales rose about 15% year-on-year, reflecting different data sources and calculation methods used by the two industry bodies.

(Reporting by Nithyashree R B; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee)