UK new car sales see modest fall in August – EY
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Senior Executive, Media Relations, Ernst & Young LLP
Maria Bengtsson, EY UK & Ireland Mobility Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for August 2025:
“UK new car registrations saw a modest decline in August, with a 2% year-on-year fall to 82,908 units, following a more significant 5% year-on-year fall in July. Sales were once again supported by further growth for Battery Electric Vehicle (BEV) registrations, which saw a 14.9% year-on-year rise. BEV market share stood at 26.5% in August, and although this figure continues to trail the 28% Zero Emissions Vehicles (ZEV) Mandate target, the green shoots seen this year are encouraging for the UK’s transition towards cleaner and greener transport and this figure is a substantial rise from July’s 21.3%. This upward trajectory for BEVs is expected to continue following the announcement of new grants which will provide discounts for a number of BEV models priced at under £37,000.
“Plug-in Hybrid Electric Vehicles (PHEVs) continue to represent an appealing stepping stone for car buyers who are looking to cut down their emissions but aren’t yet ready to go fully electric, and this powertrain played a crucial role in driving sales in August with a significant 69.4% year-on-year increase. In contrast, hybrid sales were down by 13.9% compared to August 2024 and in keeping with recent trends, petrol and diesel sales were both down again year-on-year in August – another sign that the decarbonisation of the UK’s roads continues to accelerate.
“New car registrations figures have remained relatively steady in recent months which is testament to the resilience of the UK’s automotive industry, particularly given the range of headwinds it has faced and continues to encounter, such as global trade market disruption, a complex regulatory landscape, low consumer confidence and subdued economic growth. Furthermore, with September being a new plate month, there should be further support for demand in the near-term.”
Maria added: “Following a period of consistent decline, retail sales have been much steadier this year, and saw year-on-year growth for the third time in five months in August, with a modest 0.7% rise – a crucial source of support for automakers given retail tends to be a more profitable channel than fleet.
“However, fleet sales fell again in August, with a 4.6% decline. Indeed, fleet sales growth has been less consistent across the course of this year in comparison with 2024, highlighting ongoing challenges for the UK automotive industry including high costs, charging infrastructure challenges and muted economic growth prospects.”
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