The UK new car market saw a slowdown in July, with registrations falling 5.0% to 140,154 units, the weakest July performance since 2022, and 10.8% below pre-pandemic levels in 2019, according to the Society of Motor Manufacturers and Traders (SMMT).
Demand fell for both private and fleet buyers, down 3.2% and 6.5% to 51,646 and 85,594 units respectively, while the smaller business sector bucked the trend with a 10.4% increase to 2,914 units. Most vehicle segments recorded declines, with only Dual Purpose, Mini, and Luxury Saloon models showing growth.
Electric vehicles continued to gain ground despite the overall market slowdown.
Plug-in hybrid electric vehicles (PHEVs) registrations rose 33.0%, while battery electric vehicles (BEVs) increased 9.1%.
BEVs accounted for 21.3% of the market, up from 18.5% in July 2024, though still below the 28% target required by the UK’s ZEV Mandate.
Hybrid electric vehicles (HEVs) declined 10.0% to 18,551 units, and combined petrol and diesel registrations fell 14.0% to 74,289 units, still representing over half (53.0%) of the market.
The newly announced Electric Car Grant (ECG) provides a welcome incentive for BEV uptake, offering discounts of up to £3,750.
However, full model eligibility is yet to be confirmed, causing some buyers to delay purchases.
Year-to-date, the new car market remains up 2.4% at 1.18 million units, including more than a quarter of a million BEVs, supported by a range of attractive new models and manufacturer discounts.
The latest market outlook, prepared before full ECG eligibility was announced, forecasts 1.9 million units for 2025, with BEVs expected to capture a 23.8% share.
Mike Hawes, SMMT Chief Executive, said, “July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty.
“Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.
“That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers, and our environmental ambitions.”
