The latest SMMT new registrations data saw registrations of new cars rise by 3.5% in 2025 hitting above 2m units (2,020,520) for the first time since the pandemic.

Battery electric vehicle (BEV) registrations increased by 23.9%, in line with growth trends this year. There were 473,348 BEV units, accounting for 23.4% of overall market share. However, the BEV market is still falling below the government’s 28% target set for 2025.

In addition, plug-in hybrid electric vehicle (PHEVs) registrations increased by 34.7% year-on-year and now have an 11.1% overall market share.

Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, comments: “Good to see that budget jitters fell away as new car registrations saw out the year on a high following a dip in November – with the strongest annual growth coming from plug-in hybrid electric vehicles (PHEVs) followed by battery electric vehicles (BEVs).

“However, we could start to see the demand for hybrid vehicles taper off following the post-budget double whammy which sees drivers hit with an increase in fuel duty, plus a new road tax for EVs and hybrids. It will be interesting to see whether these policy changes encourage drivers to switch to fully electric motoring or whether we see demand revert to petrol cars. EV charging points were up 18% in November, when compared to the same month last year, but this increase was for slow chargers. If we can see this level of investment in high-speed charging, it would not only continue to improve accessibility but could help to boost consumer confidence and alleviate some range anxiety.”

She added: “However, following the EU’s decision to relax its ban on the sale of new petrol and diesel cars, UK consumers might hang tight to see if the UK government changes course too. Any paralysis in consumer buying habits would not only be a real blow to new car registrations, but it would hit manufacturing and infrastructure investment, and ultimately the UK’s ambitious net zero targets.”

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