New UK car registrations hit 2m in 2025 amid EV growth – The Engineer – Home
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The UK’s new car market ended 2025 with 2,020,520 new car registrations, a figure from the Society of Motor Manufacturers and Traders (SMMT) that indicates a third year of growth.
Uptake in December rose by 3.9 per cent to 146,249 units, with a parting highlight from the private buyer market, which was up by 16 per cent.
Battery electric vehicle (BEV) registrations accounted for 32.2 per cent of the market last December, which SMMT noted as the only time the ZEV mandate target of 28 per cent was exceeded in 2025.
Consequently, last year’s market rose by 3.5 per cent, with growth across all buyer types. Demand from private buyers recovered slightly from 2024 – when uptake fell below levels last seen during 2020 – with a 4.5 per cent increase to 779,587 units and comprising 38.6 per cent of registrations. Fleet and business registrations also rose, up 2.6 per cent to 1,194,545 and 8.8 per cent to 46,388, respectively.
Hybrid electric vehicle (HEV) volumes rose by 7.2 per cent to achieve a 13.9 per cent market share, while plug-in hybrid volumes increased 34.7 per cent to take 11.1 per cent of registrations.
In total, 473,348 new BEVs were registered during 2025, which saw BEV market share rise to reach 23.4 per cent.
Manufacturer investment now provides a choice of more than 160 BEV models, with at least 60 more due in 2026. Despite this, only around a quarter of models are currently eligible for a grant to purchase an EV.
SMMT added that the new ‘eVED’ tax on EVs purchased from 2028 sends a confusing message to consumers, undermining rather than encouraging market confidence.
In a statement, Mike Hawes, SMMT chief executive, said: “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.”
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