Electric Vehicle Sales Decline for Japanese Car Manufacturers Amid Industry-Wide Shift

Strategic Insights -

Japanese car manufacturers led the declines in electric vehicle (EV) sales in the first half of 2025, with Honda and Mazda experiencing the most significant drops. The Energy and Climate Intelligence Unit (ECIU) warn that the stakes are high for companies that fail to prioritize the transition to electric motoring. Meanwhile, Ford saw the largest increase in UK EV sales, with a 324% year-on-year increase.

Key Takeaways:

  • Honda experienced a 92% decrease in UK EV sales in the first six months of 2025 compared to the same period last year.
  • Mazda saw a 76% drop in UK EV sales.
  • Nissan's UK EV sales fell by 69%, but the company is retooling its factory in Sunderland to build three new EV models.
  • Ford saw a 324% increase in UK EV sales, driven by the launch of the Ford Puma Gen-E.
  • Renault and Volkswagen also saw significant increases in UK EV sales, with both brands experiencing more than treble sales.
  • Legacy manufacturers are proving capable of making the transition to building electric cars.
  • European manufacturers dominate the transition to electric motoring.
  • The automotive sector's failure to make the transition could see its contribution to the UK economy fall by up to £34.1 billion.
  • The Government has pledged to ban the sale of new fully petrol or diesel cars and vans from 2030, with sales of hybrid cars still permitted until 2035.

Statistics:

  • 92%: Decrease in Honda's UK EV sales in the first six months of 2025 compared to the same period last year.
  • 76%: Drop in Mazda's UK EV sales.
  • 69%: Fall in Nissan's UK EV sales.
  • 324%: Increase in Ford's UK EV sales.
  • 28%: Minimum percentage of new cars sold by each manufacturer in the UK this year that must be zero emission, under the Government's Zev mandate.
  • 21.6%: Actual percentage of new cars sold across all manufacturers in the UK during the first half of the year.

Sources:

  • Energy and Climate Intelligence Unit (ECIU)
  • CBI Economics
  • PA news agency
  • New Automotive