The UK's new car market fell -10.4% in April, with 120,331 units
registered, according to the latest data published today by the
Society of Motor Manufacturers and Traders (SMMT).
It was the sixth fall in the last seven months, reflecting a
fragile economic backdrop and weakened consumer confidence, with
13,943 fewer cars registered in the month compared with the year
before and 25.3% behind pre-pandemic April 2019.1
In what is traditionally a quieter month following the March
plate change, volumes were also impacted by the late timing of
Easter, resulting in fewer working days. In addition, the
implementation of VED changes affecting all new cars, including
the Expensive Car Supplement which became applicable to many new
EVs from 1 April, pushed transactions into March as shrewd buyers
got ahead of the tax increases.
Registrations fell across all sales types, with private, fleet
and business demand down -7.9%, -11.9% and -10.9% respectively.
Continuing market trends, fleet buyers drove activity,
responsible for six in 10 registrations. In terms of powertrain
performance, demand for hybrid electric vehicles (HEVs) fell
-2.9%, with petrol and diesel registrations down –22.0% and
–26.2% respectively. Conversely, registrations of vehicles with a
plug rose: plug-in hybrids (PHEV) up 34.1% and battery electric
vehicles (BEV) increasing 8.1% to 24,558 units, taking more than
a fifth (20.4%) of the market.
There is now a huge range of BEVs on the market, with more than
130 models available – including an increasing number at lower
price points – the result of massive investment by manufacturers
to offer electric options for all consumers across all segments.
Year-to-date the new car market is up 3.1% and, with new BEV
registrations up 35.2% to push market share to 20.7%, these
models are now the second most popular powertrain after petrol
but still below the 28% required under market regulations. While
government's recently proposed amendments to the Zero Emission
Vehicle Mandate requirements are welcome – recognising the
intense pressure on the sector – the targets remain incredibly
challenging and more must be done to stimulate demand.
The importance of government incentives to boost volumes remains
paramount. Halving VAT on new EV purchases; scrapping, or
amending, the VED Expensive Car Supplement; and equalising VAT
paid on public charging to that levied at home would all help
boost the market and send a strong signal to any hesitant buyers
that now is the time to go electric.
Mike Hawes, SMMT Chief Executive, said, “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. Recent government adjustments to flexibilities
and compliance within the ZEV Mandate are welcome and an
important first step in relieving some of the pressure on the
market and manufacturers. However, 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.”
The news comes as the latest market outlook revises up full year
2025 new car registrations to 1.964 million units but keeps 2026
expectations below the two million mark for what would be the
seventh successive year. Market share expectations for new BEV
registrations, meanwhile, remain fairly constant with only a
marginal revision downward from the January view, by -0.2
percentage points to 23.5% for this year, and by -0.3 percentage
points to 28% next year, compared with the ZEV Mandate targets of
28% and 33% respectively.
