The UK automotive sector recorded a 3.5% year-on-year rise in new car registrations in 2025, reaching 2.021 million units. The Society of Motor Manufacturers and Traders (SMMT) highlighted strong demand for electric and hybrid vehicles, reflecting consumer confidence and the industry’s transition toward sustainable mobility.
The UK car market showed resilience in 2025, with new registrations climbing to 2.021 million units, up 3.5% compared to 2024. According to data released by the Society of Motor Manufacturers and Traders (SMMT), the growth was driven by rising demand for electric vehicles (EVs) and hybrids, alongside steady recovery in consumer confidence.
Key highlights from the announcement include
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Total new car registrations in 2025 stood at 2.021 million units, marking a 3.5% increase year-on-year.
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Electric and hybrid vehicles accounted for a growing share of registrations, underscoring the UK’s shift toward greener mobility.
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Fleet demand remained strong, supported by corporate investments in sustainable transport solutions.
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Private consumer demand also improved, reflecting easing inflationary pressures and better financing options.
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The growth comes despite challenges from supply chain disruptions and global economic uncertainty.
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SMMT emphasized the importance of continued government support for EV infrastructure to sustain momentum.
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Industry experts believe the positive trend sets the stage for further expansion in 2026, particularly in the electric segment.
The rise in new car registrations highlights the UK automotive industry’s adaptability and consumer appetite for sustainable transport. With EV adoption accelerating and overall demand improving, the sector is positioned for steady growth despite global headwinds.
Sources: Reuters, Society of Motor Manufacturers and Traders (SMMT), Financial Times