2025: Navigating the new normal

This year has seen leaps forward in technology, steps back in demand and step changes in regulation.

26 December 2025

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2025 has been the latest in a series of ‘unprecedented’ years. It has come to a point where abnormal is now normal and automotive clairvoyants prove to be just as clueless as the rest of us.

This year has seen leaps forward in technology, steps back in demand and step changes in regulation. Since joining Astor Media in May, I have witnessed this first-hand.

The EV-ICE showdown

It is impossible – and frankly ignorant – to speak about 2025 in this sector without discussing electric vehicles (EVs). 2025 has seen the UK market inundated with competitive EVs from China, prompting European legacy manufacturers to finally get their act together.

After years of offering uncompetitive, overpriced EVs that seem to be reluctantly engineered, legacy manufacturers have managed to deliver genuinely compelling products.

The Mercedes-Benz CLA, BMW iX3 and DS No 8 all offer ranges in excess of 450 miles, along with prices that are edging closer to those of their internal combustion (ICE) counterparts.

After years of segregating its ICE and EV lineup, Volkswagen finally announced that its medium-sized electric hatchback would wear the iconic Polo name. This marked an end to the German giant’s longstanding EV-cautious strategy.

That said, 2025 was not a year of all-round EV success. Low residual values continued to be a headache for leasing firms, fleets, dealers and owners alike.

The pot was further stirred in October, when Chancellor Rachel Reeves announced the plan for per-mile taxation on plug-in cars. The scheme, while well-reasoned on paper, caused nothing short of a meltdown from many an industry executive.

Not to be outdone, the EU then significantly watered-down its own 2035 ICE ban, only complicating things further.

But business keeps on trucking. After so many setbacks, U-turns and potholes, the automotive industry has become incredibly resilient and adaptable.

Despite the path towards electrification being clear to many, there is still much to get excited about on the ICE side.

2025 saw Porsche release its latest 911 Turbo, fitted with a clever hybridised turbocharger, a genuine technical innovation which promises to eliminate lag. And if that does not do it for you, it will still sell you a howling 9,000rpm GT3 complete with a do-it-yourself gearbox.

It is this ‘multi pathway approach’, a term first coined by Toyota a few years ago, that has come to define the industry.

Fleets, OEMs and dealers now must hedge their bets, striking a balance between EV investment and ICE pragmatism, in the face of a market that seems to be all in on electric one day, then deeply pessimistic the next.

Out and about

Throughout the year, I have been lucky enough to attend a number of fantastic industry events, being in the room with the people who keep this industry’s wheels turning.

Just one month after joining Astor Media, I attended Keyloop Fusion Live, where I spoke to Adrian Nash about how artificial intelligence (AI) will shape the future of dealerships.

Later in the year, we hosted our first Leasing Broker Federation Awards, where it was a pleasure to present an award, and speak to people who have been leasing cars longer than I’ve been alive.

The BVRLA Industry Insight Conference was an insight-overload, chock-full of refreshingly candid discussions with experts.

I also attended the UK launch of the MGS6 EV – my first-ever new car launch – along with our editor at large, Adrian Simpson. As someone with a passion for product and new technology, it was genuinely exciting to be one of the first in the UK to get behind the wheel, and to see how a seasoned pro goes about testing a car.

Editorial highlights

It was at the MGS6 EV launch that I spoke to Guy Pigounakis, who is not only MG’s current commercial director, but also a veteran of the MG Rover era. The interview covered everything from V8s to the ZEV Mandate, and was a fascinating look at what SAIC Motor has managed to do with the storied, but previously long-troubled brand.

Speaking to another industry veteran, Jörg Grotendorst, I heard how the European automotive manufacturing sector could face extinction if it does not adapt.

A chat with David Richardson from Coryton revealed that sustainable fuels are not the way to keep everyone driving ICE cars indefinitely, but they are a solution to the preservation of classic cars for generations to come.

The first issue of Automotive Business Magazine (ABM) was packed with content from across the industry. Personal favourites included my colleague Milly’s piece on female representation across the sector, Adrian’s series of road tests and my look at hydrogen combustion with Toyota and Mobil1, hearing about the multi-pathway approach in depth.

2025 also saw numerous auctions, product announcements and anniversaries in my beloved classic car sector, which has gone from strength to strength, although much remains to be done, certainly in terms of parts support.

In August, I took over curation of our midday newsletters across our main automotive brands, which has been greatly satisfying, especially when more server capacity was required after the newsletters drove too much traffic to the sites!

Despite having loved cars for as long as I can remember, I have had plenty to learn, not least the thousands of acronyms in the fleet and leasing sector.

Near the end of the year, I sat down with experts from Autotrader to hear about how it was planning to move forward with Deal Builder following the backlash, but also what it expects from the used car market next year.

This year was not just my first in automotive media, but Astor Media’s first, too. It has been great to see the team that has disrupted the status quo on the financial services side turn its attention to this market too, through hard work and investment.

Having both expert journalists and a sector expert in the form of Adrian has provided us with a strong footing, despite being a largely new team.

Looking forward

By all accounts, 2026 promises more of the same disruption as 2025. I am sure we will see more new brands enter the UK market, certainly from China, although I hope to see others enter too, such as Lucid and Rivian from the US.

Industry bodies such as the BVRLA and the AFP, along with leasing firms, will hopefully work to further improve EV residual values, although as one crisis ends, another is sure to begin.

I have less hope for the electric van sector, which needs seismic shifts in product, pricing and regulation, as well as a few more years before it can reach the maturity of the electric car market.

Personally, I look forward to driving more cars in 2026, whether old or new, ICE or EV, good or bad. I am also excited to speak to more experts and continue learning about what is surely one of the most crucial, nuanced and varied sectors.

Business Motoring Award Winners 2025

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