The UK new car market declined slightly in November as new registrations fell by 1.6% to 151,154 units, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
However, fleet uptake edged up 0.2%, while business buyer volumes rose 18.0%.
Battery electric vehicle (BEV) uptake, supported by the Electric Car Grant, rose to reach 26.4% share of the market, just ahead of the 25.1% achieved in November last year.
The fastest growth was recorded by plug-in hybrids, up 14.8% and accounting for 11.9% of registrations.
However, with volumes rising 3.6%, this represented the weakest month for BEV growth in almost two years.
The sixth fall this year was driven by a 5.5% decline in overall demand from private buyers.
Hybrid electric vehicle (HEV) uptake rose slightly by 1.3% to comprise 13.1% of the market.
As a result, electrified vehicles achieved a record market share for the year of 51.4%, with petrol- and diesel-powered vehicles recording their third consecutive month as a minority of registrations.
Although BEV registrations are now at record volumes – with 426,209 joining the road in the last 11 months – their 22.7% year-to-date market share still falls short of the 28% annual Government target.
While last week’s Budget provided some support to accelerate the transition to electric vehicles – including additional funding to extend the Electric Car Grant, an uplift in the threshold from which EVs would be subject to the VED Expensive Car Supplement, and more money for infrastructure rollout – plans to introduce a ‘pence per mile’ electric Vehicle Excise Duty (eVED) will endanger the UK’s net zero transition.
Current proposals will quash demand right when it is needed to rise steeply, leaving the market even further adrift of Government goals.
Mike Hawes, chief executive of the SMMT, said: “Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need.
“But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call that sustained increase in demand for EVs cannot be taken for granted.
“We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.”
Reaction:
Melanie Lane, CEO at Pod:
“A growth slowdown in November proves that now is the wrong time to introduce taxes on EV drivers and that further cost pressures for manufacturers and fleet managers will keep the sector from achieving a 28% market share target set by ZEV mandate.
“The total cost of owning an EV is lower than ICE and the intention from drivers is there – but the Government needs to give consumers and the market more confidence in order to sustain demand, yield returns on its own Electric Car Grant investment and generate growth for the UK over the long term.”
Helen Thorne, spokesperson for the Leasing Broker Federation (LBF):
“Shaped by hesitation, headwinds, and hard choices, November’s slight decline in new car registrations highlights just how fragile confidence remains.
“With ongoing cost pressures and changing taxation, many consumers and businesses are delaying significant investment.
“The Autumn Budget has added further concern, with new pay-per-mile tax on EVs and PHEVs potentially discouraging uptake at a critical stage.
“In this environment, it is vital the market provides affordable, flexible routes to mobility when purchase feels unviable. Clarity and support are now essential to protect progress.”
Philipp Sayler von Amende, global chief commercial officer at Carwow:
“The SMMT’s latest registration data points to the latent volatility in electric vehicle (EV) demand.
“Our own data shows how the Electric Car Grant (ECG) stimulated a significant initial spike in interest from consumers looking to make the switch to an EV – we saw a 30% uplift in enquiries sent to our dealer partners on the day of the announcement when compared with the previous day.
“The spike in interest eased through the third quarter of the year, and demand has likely softened further as a consequence of the widespread speculation about EV-specific tax policies and the new pay-per-mile measures announced in the Chancellor’s Autumn Budget last week.
“The volume of EV enquiries placed with dealers via Carwow increased by a substantial 33% in November, suggesting that, while casual interest in EVs might have been undermined by the recent focus on new EV taxes, genuine demand remains very robust.
“We’re also seeing the share of enquiries for internal combustion engine (ICE) vehicles and EVs converging, with one in three enquiries sent to our dealer partners now for EVs.
“If this trend continues, we predict 2026 to be the year EV enquiries finally exceed ICE.
“We can also see that consumer interest in hybrid cars on Carwow was very strong last month, with enquiries up 49%, year-on-year, and they continue to hold a 25% share of enquiries placed via Carwow across all powertrain types, marginally behind EVs which have a 31% share.
“This tells us that, while many buyers are still open to EVs, hybrids can represent a safer option in uncertain times.”
Maria Bengtsson, mobility leader at EY UK & Ireland:
“After two consecutive months of growth in September and October, UK new car registrations fell year-on-year in November to 151,154 units, down 1.6% from 153,610 units in the same month last year.
“The modest decline in sales is relatively unsurprising given uncertainty around the Autumn Budget is likely to have prompted some businesses and consumers to delay purchase decisions.
“Battery Electric Vehicle (BEV) registrations continued their growth last month despite the dip in overall new car sales, with a 3.6% year-on-year rise. Whilst this was a much less significant uptick than the 23.6% increase seen last month, BEVs accounted for 26.4% of market share in November, up from 25.4% in October.
“However, this remains below the 28% Zero Emissions Vehicles (ZEV) Mandate target, which continues to be a key regulatory challenge for automakers – not least given the introduction of the new mileage-based tax for EVs, which could reduce demand.
“With that said, the Chancellor’s announcement of an increase in the expensive car supplement threshold for EVs from £40,000 to £50,000, and an extension of the Electric Car Grant to more models over a longer time period, combined with additional investment in EV charging infrastructure, should help to limit any reduction in EV demand prompted by the introduction of the new mileage tax.
“Plug-in Hybrid Electric Vehicle (PHEV) and Hybrid sales both saw growth in November, with 14.8% and 1.3% year-on-year upticks respectively.”
“In contrast to consistent recent growth, retail sales fell back in November, with a 5.5% year-on-year decline. This likely reflects relatively downbeat consumer sentiment and heightened uncertainty in the lead up to the Autumn Budget, which may have delayed some purchase decisions.
“Meanwhile, fleet sales saw a marginal 0.2% year-on-year rise despite the fall in overall new car registrations.”
Susan Wells, director of EV & Solar at Hive:
“More drivers than ever are switching to electric vehicles, and that momentum is expected to carry into the new year.
“Last week’s Budget included some welcoming steps, including renewed grant funding and measures aimed at keeping EVs affordable across more vehicle types.
“At the same time, proposals that could add new costs for EV drivers, such as a pay-per-mile approach, risk creating uncertainty.
“To keep the UK on track, long-term clarity is essential. A strong, reliable charging network backed by sustained investment – alongside stable incentives that support households and businesses – will help maintain confidence and keep momentum moving in the right direction.”
OIiver Holt, sales manager (UK and Ireland) at Geotab:
“Today’s data still shows positive signs of zero emission vehicle growth, with EVs now firmly part of the mainstream fleet mix. However, the pace of growth is fragile, and we cannot assume it will continue without the right policy environment.
“The Autumn Budget delivered mixed signals for fleets. The introduction of the EV tax is clearly the most significant measure affecting EV uptake, and it adds another layer of uncertainty for operators already navigating tight margins.
“Additionally, the extended freeze on fuel duty, while welcome for short-term pressures, risks slowing the shift away from fossil fuels.
“The announcement of £1.3 billion for the Electric Car Grant and £200m commitment to increase the rollout of charging points will also need to translate into tangible improvements if the government is to effectively support EV adoption at scale.
“Policy needs to be rewarding zero-emission miles and supporting regions and sectors lagging behind. Telematics can help fleets to manage costs and model the impact of new charges, but these are defense measures.
“Clear, stable, long-term incentives will be essential to keep the EV transition on track.”
