UK new car market dips in August, EVs hit record share

UK new car registrations fell 2.0% year-on-year in August to 82,908 units, according to the Society of Motor Manufacturers and Traders, as fleet demand softened and buyers awaited the September number plate change.

Source: Sharecast

Fleet volumes declined 4.6% to 48,980 vehicles, although the segment still made up 59.1% of the market. Private registrations edged up 0.7% to 32,319, while business sales surged 41.6% to 1,609 units, albeit from a low base.

Battery electric vehicles continued to gain ground, with registrations up 14.9% to 21,969 units, representing a 26.5% market share — the highest recorded in 2025 and the fourth highest on record - something the SMMT attributed to the growth of increased model choice, manufacturer discounting, and the early impact of the UK government's new Electric Car Grant.

Plug-in hybrids posted the strongest growth in August, surging 69.4% to an 11.8% share, while hybrid electric vehicles fell 13.9% to 11.4%. Petrol and diesel registrations slumped 14.2% and 16.6%, respectively.

Year-to-date, the UK new car market was up 2.1% to 1.265m units, a five-year high but still 16.7% below pre-Covid levels. BEVs account for 21.9% of registrations so far in 2025, trailing the Zero Emission Vehicle mandate target of 28%.

Reporting by Iain Gilbert at Sharecast.com

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