New car registrations surpassed 2 million in 2025 – Marketing Stockport

January 6, 2026 admin

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January 6, 2026
Annual new car registrations reached a post-pandemic high of 2.02 million in 2025, up 3.5% year-on-year, the Society of Motor Manufacturers and Traders (SMMT) has revealed.
2025 marked the third consecutive year of growth for the UK’s new car market, with a December surge in registrations taking the year’s total across the 2 million milestone for the first time since the Covid-19 pandemic.
While traditional combustion engines accounted for the majority of new cars hitting the roads, market share for battery Electric Vehicles (EVs) reached 23.4%. In December, battery EVs topped 32.2% of all new car registrations, and saw the motor trade meet the Government’s zero-emission vehicles mandate target of 28% for the only time in the year.
Electrified vehicles (including battery EVs and hybrids) narrowly missed becoming the majority of the market despite the surge seen during the last quarter. Hybrid electric vehicle (HEV) volumes rose by 7.2% to achieve a 13.9% market share, while plug-in hybrids were the fastest growing powertrain, with volumes increasing 34.7% to take 11.1% of registrations.
With over 470,000 new battery EVs registered throughout 2025, the UK is now likely to place as the second biggest EV market in Europe, with UK drivers having access to more than 160 models.
Mike Hawes, SMMT Chief Executive, commented:
“The new car market finally reaching two million registrations for the first time this decade is a reasonably solid result amid tough economic and geopolitical headwinds. Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high. Government has stepped in with the Electric Car Grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals.
“Given developments abroad, government should bring forward its review and act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition.”
Looking ahead, while average new car CO₂ has fallen by -10.1% from 2024 to 91.8 g/km, which will assist some manufacturers with mandate compliance, the UK’s zero emission sales target will next year require BEVs comprise one in three new car registrations. The UK already has the most ambitious transition trajectory of any major car market and, with the EU’s proposal to revise its end of sale date from 2035, divergence between the UK and the EU markets is broadening.
The SMMT argues action is therefore needed from government to ensure the British market remains attractive for investment, and one which supports consumers, the industry and the economy. The forthcoming review of the ZEV Mandate will be a crucial opportunity to ensure the transition supports the UK’s international competitiveness and prosperity, as well as its shared decarbonisation goals.
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