UK car sales remained flat in February, an expected result even without current economic pressures, as consumers wait to buy in March following the change in registration plate.
February traditionally produces the smallest total of the year, accounting for only 4% of annual volume.
Latest figures produced by the Society of Motor Manufacturers & Traders (SMMT) showed overall registrations through the month down by 1.0%, with a total of 84,886 new vehicles recorded. Year-to-date 227,762 new cars have been registered, a 1.9% drop on the same period in 2024.
In a complete swing from recent trends the month saw a 4.0% reduction in fleet registrations, the fleet sector having sustained the market for much of 2024. In contrast private sales, which have been steadily declining, showed 4.6% growth, earning 35.6% of the market.
A further bright spot on the surface was the continuing growth of battery-electric vehicle (BEV) registrations, with 21,244 registered in February. Over the first two months of 2025 BEV registrations have risen by 41.6% to claim 22.8% of the overall market, compared to 15.8% at the same point in 2024.
Despite these positive figures, which also saw rises for plug-in hybrid (PHEV) cars, the SMMT was at pains to point out that February is always a volatile month and predictions for the remainder of 2025 still have the level of BEV share falling short of the 28% required by the Government’s Zero Emissions Vehicle (ZEV) mandate – especially as changes coming in April to taxation and particularly the Expensive Car Supplement (ECS) will significantly affect BEV sales.
BEVs will be subject to the supplement for the first time in April, and very few cost below the £40,000 threshold which was last changed in 2017. The SMMT is joining much of the industry in calling for changes to the ECS, which the industry body says will add £2,125 over six years to the cost of such cars.
The SMMT argues that BEVs are disproportionately affected by the ECS as higher production costs put them above the threshold. It further claims that the measure risks disincentivising the used market as well as the new, impeding a faster, fairer transition to electric vehicle adoption.
SMMT chief executive Mike Hawes described the rise in electric car uptake as good news, while adding that it was at huge cost to manufacturers in terms of market support and that it is always dangerous to draw conclusions from a single month, especially one such as small and volatile as February.
“With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month – but, long term, EV consumers need carrots, not ever more sticks,” Hawes said.
Industry figures remain equally worried. Jon Lawes, managing director at one of the UK’s largest fleet operators Novuna Vehicle Solutions, commented that concerns are mounting over future tax rises, complicating long-term fleet planning.
“Manufacturers, reliant on incentives to meet ZEV mandate targets, now face an unpredictable landscape – combined with geopolitical instability, this could strain supply chains and push prices higher, dampening momentum just as the sector needs acceleration,” Lees said.
Philipp Sayler von Amende of online car sale marketplace Carwow added that the February snapshot of car sales did not reflect the true picture of their market. “EV sales continue to be dominated by fleets and consumer uptake remains worryingly low, despite growing volumes of enquiries,” he said.
“In February, EV enquiries on Carwow were up 87% compared to February 2024, indicating that an increasing number of consumers are considering making the switch. However, if this increased interest is to be converted into actual sales, the government must step in to provide motorists with more incentives to buy,” von Amende added.
Carwow is also adding to industry calls for a clearer picture from the Government; “Car manufacturers are also in need of clarity – the recent decision by BMW to pause a £600m electric upgrade to Plant Oxford highlights the general sense of unease surrounding the Government’s approach to electrification.
“A clear, consistent policy framework – whether that’s working to 2030 or 2035 – will help car makers commit to long-term investment in UK manufacturing.”
March is expected to see a significant positive swing to car sales, both due to the new registration plate and buyers seeking to secure their purchases before the taxation changes come into effect in April.
