The UK new car market experienced a 10.4% year-on-year decline in April 2025, with 120,331 new vehicles registered, according to the Society of Motor Manufacturers and Traders (SMMT). However, battery electric vehicles (BEVs) continued their growth trend, recording an 8.1% increase compared to April 2024 and reaching a 20.4% market share, up from 16.9% last year.
This performance comes amid a challenging economic backdrop marked by weak consumer confidence and the impact of Vehicle Excise Duty (VED) changes introduced on 1 April, including the Expensive Car Supplement, which now applies to many new electric vehicles.
Electrified Powertrains Show Mixed Results
- BEVs: 24,558 registrations (+8.1% YoY), 20.4% market share
- PHEVs: 14,073 registrations (+34.1% YoY), 11.7% share
- HEVs: 16,586 registrations (-2.9% YoY), 13.8% share
- Petrol: 58,733 registrations (-22.0% YoY), 48.8% share
- Diesel: 6,381 registrations (-26.2% YoY), 5.3% share
Plug-in vehicles (BEVs and PHEVs combined) accounted for 32.1% of all new registrations in April 2025, underlining a steady shift in market composition. However, the current BEV share remains below the 28% Zero Emission Vehicle (ZEV) Mandate target for 2025.
BEVs Face Strong Headwinds Despite Model Availability
Despite a market offering more than 130 BEV models, including many entry-level options, broader adoption is still constrained by financial barriers and policy uncertainty. Industry representatives have emphasised that manufacturers alone cannot carry the burden of market transformation without further support.
Proposed measures include:
- Halving VAT on new EV purchases
- Adjusting or scrapping the VED Expensive Car Supplement
- Equalising VAT on public and home charging
SMMT Chief Executive Mike Hawes commented:
“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. 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.”
Outlook and Market Forecast
SMMT’s full-year forecast for BEVs in 2025 was revised slightly downward from 23.7% to 23.5%, while the 2026 forecast now stands at 28%, still short of the 33% ZEV Mandate target.
Year-to-date (YTD), new BEV registrations are up 35.2%, and BEVs now rank as the UK’s second most popular powertrain after petrol. However, private and fleet demand both dropped in April, by 7.9% and 11.9% respectively, reinforcing the importance of targeted incentives to sustain momentum.
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Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.
