The UK’s new car market experienced a significant drop in April 2025, with new vehicle registrations falling by 10.4% year-on-year to 120,331 units, according to the Society of Motor Manufacturers and Traders (SMMT).
April’s drop is the sixth one in the past seven months, and has been attributed to a combination of factors such as:
- VED Changes: The introduction of Vehicle Excise Duty (VED) increased on 1st April, including the extension of the Expensive Car Supplement to many new electric vehicles (EVs). This led to a big increase in sales during March as consumers rushed to avoid higher taxes
- Economic Factors: A weak economic backdrop and weakened consumer confidence contributed to the reduced demand
- Seasonal Timing: April is traditionally a quieter month following the March plate change, and this year, the late timing of Easter resulted in fewer working days, further impacting sales
Fuel Type Performance:
- Battery Electric Vehicles (BEVs): Registrations rose by 8.1% to 24,558 units, which is a 20.4% market share. However, this remains below the 28% target set by the Zero Emission Vehicle (ZEV) Mandate
- Plug-in Hybrid Electric Vehicles (PHEVs): Saw a significant increase of 34.1% in registrations
- Hybrid Electric Vehicles (HEVs): Experienced a slight decline of 2.9%
- Petrol and Diesel Vehicles: Registrations fell sharply by 22% and 26.2%, respectively
Sales Channels:
- Private Sales: Decreased by 7.9%
- Fleet Sales: Dropped by 11.9%
- Business Sales: Fell by 10.9%
Top-Selling Models in April:
- Kia Sportage – 3,514 units
- Ford Puma – 3,311 units
- Vauxhall Corsa – 2,376 units
- Nissan Qashqai – 2,197 units
- Audi A3 – 2,112 units
Industry Outlook:
The SMMT has revised its full-year 2025 new car registration forecast upward to 1.964 million units. However, the projected BEV market share has been slightly adjusted downward to 23.5%, still falling short of the ZEV Mandate’s 28% requirement.
To increase the demand for EVs, industry leaders are requesting more government incentives, such as halving VAT on new EV purchases, amending the VED Expensive Car Supplement, and equalising VAT rates between public and home charging.
“April’s performance is disappointing but expected after March’s surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition. Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.
Mike Hawes, SMMT Chief Executive
However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch”
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