UK New Car Sales Fall 2.5% in January as EV Demand Grows

The UK new car market experienced a 2.5% decline in January, marking the fourth consecutive month of falling sales, with a total of 139,345 vehicles registered. Both petrol and diesel car registrations saw significant drops of 15.3% and 7.7%, respectively, while electric vehicle (EV) sales surged by 41.6%, capturing a 21.3% market share. Despite the growth in electric and hybrid models, the Society of Motor Manufacturers and Traders (SMMT) noted that overall demand is not increasing quickly enough to meet government targets, with affordability cited as a major barrier to uptake. SMMT chief executive Mike Hawes emphasized the need for measures to encourage EV adoption rather than penalizing buyers. Current forecasts predict a slight contraction of the new car market in 2025, despite expected growth in electric vehicle sales. The industry's challenges are compounded by economic uncertainties and rising competition from new market entrants.