New Car Sales in Britain Surpass 2M in 2025
New car registrations in Britain reached 2.02 million last year, representing a 3.5 percent increase from 2024, data from the Society of Motor Manufacturers and Traders (SMMT) indicated. Though falling short of the pre-pandemic benchmark of 2.31 million units registered in 2019, the figure signals a return to the sector's historical annual average.
Electric vehicles captured approximately 23 percent of total registrations in 2025, with fully electric car sales climbing nearly a quarter year-over-year to an unprecedented level.
Chinese automotive brands have steadily expanded their foothold among British buyers, with registrations of electric and hybrid models from manufacturers including BYD, MG, and Chery experiencing consistent growth. Preliminary data indicates Chinese manufacturers represented nearly 10 percent of new car registrations in 2025—nearly double their market share from the previous year.
The SMMT attributed the uptick to broader consumer embrace of battery electric and plug-in hybrid vehicles, though it acknowledged that overall electrification progress remains inconsistent.
SMMT Chief Executive Mike Hawes characterized the recovery as "not yet complete," cautioning that growth has been heavily concentrated in specific market segments. He emphasized that EV demand was bolstered by substantial manufacturer incentives, describing the current sales growth trajectory as "fragile."
The SMMT reported that manufacturers provided discounts valued at approximately 5.5 billion pounds (roughly 7.45 billion U.S. dollars) last year to boost EV demand and satisfy the government's zero-emission vehicle mandate. The program compels automakers to achieve escalating annual targets for zero-emission vehicle sales or face monetary sanctions.
Despite stronger December figures, EV sales failed to meet the government's annual target, leading the SMMT to advocate for an accelerated review of the mandate to deliver enhanced policy clarity for both industry stakeholders and consumers.
The industry organization noted that broader economic pressures, supply chain disruptions, and escalating costs continue to present obstacles for the British automotive sector, despite overall sales demonstrating signs of stabilization.
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