UK Car Registrations Decline 1% Amid EV Growth

In February 2025, the UK new car market saw a 1% decline in registrations, totaling 84,054 units, marking the fifth consecutive month of decrease, primarily driven by a significant drop in petrol vehicle sales. However, electric vehicle (EV) registrations surged, with battery electric vehicles (BEVs) increasing by 41.7% to 21,244 units, capturing a 25.3% market share. This growth is attributed to upcoming tax changes in April that will impose new excise duties on many EV models, prompting a rush in registrations before the changes take effect. Despite the positive uptick in EVs, industry leaders express concern about the long-term sustainability of this growth amidst rising costs and regulatory pressures. The market is expected to see a further increase in March, traditionally a stronger month due to the new number plate change. However, the overall market's performance still falls short of the government's 28% EV target for the year.