New car registrations exceed 2m but ‘EV pace still slow’
6 January 2026 
The UK new car market grew for the third year in a row in 2025, breaching the two million mark for the first time since the pandemic, with 2,020,520 new car registrations, according to figures published today by the Society of Motor Manufacturers and Traders.
Uptake in December rose by nearly 4% to 146,249 units, with what SMMT said was a final flourish in the private buyer market, up by 16%.
Repeating a pattern seen in previous years, battery electric vehicle (BEV) registrations took a high market share in the final month of the year, accounting for over 32% of the market – the only time the ZEV mandate target of 28% was exceeded in 2025.
As a result, last year’s market rose by 3.5%, with growth across all buyer types. Demand from private buyers recovered slightly from 2024 – when uptake fell below levels last seen during 2020 – with a 4.5% increase to 779,587 units, but still only comprising 38.6% of registrations. Fleet and business registrations increased 2.6% to 1,194,545 and 8.8% to 46,388 respectively.
Plug-in hybrids
Electrified vehicles narrowly missed becoming the majority of the market despite a surge during the last quarter. Hybrid electric vehicle (HEV) volumes rose by more than 7% to take a near 14% market share, while plug-in hybrids were the fastest growing powertrain, with volumes increasing 35% to take over 11% of registrations.
Almost half-a-million new BEVs were registered during 2025 – more than in the whole of 2021 and 2022 combined.
SMMT said massive manufacturer investment now provides a choice of more than 160 BEV models – up from just over 130 at the start of 2025 – with at least 60 more due in 2026.
However, EV uptake has risen by only 24%. The long-awaited return of a grant for EV purchase has helped, although only around a quarter of models are currently eligible for the incentive at any level.
Manufacturers continue to shoulder the burden of driving up demand, subsidising their sale by more than £5 billion in 2025, equivalent to a massive £11,000 per BEV registered, SMMT said.
‘Unsustainable subsidies’
“Such subsidies are clearly unsustainable. Furthermore, the announcement of a new ‘eVED’ tax on EVs purchased from 2028 sends a confusing message to consumers, undermining rather than encouraging market confidence.”
Mike Hawes, SMMT chief executive, said, “The new car market finally reaching two million registrations for the first time this decade is a reasonably solid result amid tough economic and geopolitical headwinds.
“Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high. Government has stepped in with the Electric Car Grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals.
“Given developments abroad, government should bring forward its review and act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition.”