The UK’s new car market experienced a significant decline in April 2025, with registrations falling by 10.4% year-on-year to 120,331 units, according to the Society of Motor Manufacturers and Traders (SMMT).
This downturn marked the sixth decrease in the past seven months, attributed to a combination of factors, including a fragile economic backdrop, weakened consumer confidence, and recent tax changes.
The implementation of Vehicle Excise Duty (VED) changes on 1st April, which affected all new cars – including the Expensive Car Supplement now applicable to many new electric vehicles (EVs) – prompted many buyers to advance their purchases to March, leading to a subsequent drop in April sales.
Registrations declined across all buyer types: private sales decreased by 7.9%, fleet registrations by 11.9%, and business purchases by 10.9%.
Despite the overall market contraction, there was a positive trend in the adoption of electrified vehicles.
The SMMT found that battery electric vehicle (BEV) registrations increased by 8.1% to 24,558 units, capturing a 20.4% market share.
Plug-in hybrid vehicles (PHEVs) saw a significant rise of 34.1%, while hybrid electric vehicles (HEVs) experienced a slight decline of 2.9%.
Conversely, petrol and diesel vehicle registrations fell by 22.0% and 26.2%, respectively.
The SMMT revised its full-year 2025 market outlook, now projecting 1.964 million new car registrations.
However, the anticipated market share for BEVs has been slightly adjusted downward to 23.5%, still below the 28% target set by the Zero Emission Vehicle (ZEV) Mandate.
Mike Hawes, chief executive at the SMMT, said: “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.
“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.”
The top-selling models in April were the Kia Sportage (3,514 units), Ford Puma (3,311), and Vauxhall Corsa (2,376). Year-to-date, the Ford Puma leads with 18,241 registrations, followed by the Kia Sportage (16,380) and Nissan Qashqai (13,989).
In response to the figures, British Gas subsidiary Hive highlighted the importance of charging infrastructure in supporting this market transition.
For dealers, understanding the charging landscape is becoming increasingly important when advising customers on EV purchases and ownership requirements.
Susan Wells, director of EV and solar at Hive, said: “Electric vehicle uptake continues to climb at record levels, as more drivers are looking to make the switch to more sustainable modes of transport.
“To facilitate this demand, it’s encouraging to see local councils accelerate the rollout of public charging points.
“The continued increase in charge point rollout is positive; however, it must be maintained, as drivers need the confidence to charge conveniently, both at home and in public spaces, to make the EV dream a reality.”
Wells added: “Affordability still remains one of the biggest barriers to EV uptake and policymakers must ensure they are taking every step to encourage more drivers to make the transition.
“This includes additional funding to support the rapid expansion of the UK’s charging network and reducing VAT on public charging costs.”
Jon Lawes, managing director at Novuna Vehicle Solutions, said: “The next few months will be critical for the UK motor industry as it grapples with the impact of sweeping tariffs imposed by the US administration and fears over price hikes and disrupted supply chains.
“This injects a level of volatility into market, which the industry could do without. Affordability remains the key to EV adoption, and any threat to that risks stalling hard-won progress.
“As economic pressures mount, ensuring cost stability and policy consistency will be vital.
“The leasing sector, instrumental in the UK’s electrification journey, must remain agile to support businesses and drivers through a period of geopolitical uncertainty.”
