9:39 am, December 4, 2025
The UK’s new car market shrunk in November, with registrations falling for the sixth time this year.
New data from the SMMT shows that 151,154 brand new cars were sold in the 11th month of the year – a year-on-year slide of 1.6%.
Experts say that the decline was fuelled by a 5.5% slump in overall demand from private buyers. On the flip side, fleet uptake saw a small 0.2% increase with business buyer volume up by an impressive 18%.
Elsewhere, the SMMT says that the Electric Car Grant (ECG) is beginning to make an impact, with BEV sales reaching a market share of 26.4%.
While this was an improvement on last November, in the year-to-date, BEV sales remain short of the current ZEV mandate targets. In the first 11 months of 2025, electric cars have taken a 22.7% market share – well off the 28% annual government target.
Also, despite electric volumes rising by 3.6%, November marked the weakest month for BEV growth in almost two years.
Meanwhile, hybrid electric vehicle (HEV) uptake rose slightly by 1.3% to comprise 13.1% of the market. The fastest growth was recorded by plug-in hybrids, up 14.8% and accounting for 11.9% of registrations.
Combining all the data, electrified vehicles achieved a record market share for the year of 51.4% – the third month in a row that they outnumbered ICE vehicles.
Overall, the Ford Puma remained the best-selling new car, with 4,859 registrations throughout the month and 50,808 in the year-to-date.
The Kia Sportage (3,694) also enjoyed a strong month, just ahead of Nissans Qashqai (3,004) and Juke (2,835).
The latest news comes a week after Labour announced major changes to the automotive industry in the latest Budget.
While the SMMT welcomed the government’s change of heart on Employee Car Ownership Schemes and additional funding for the ECG, it warned that plans to introduce a pence per mile charge on EVs could ‘endanger the UK’s net zero transition’.
Mike Hawes, SMMT chief executive, said: ‘Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need.
‘But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call that sustained increase in demand for EVs cannot be taken for granted.
‘We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.’
How has the industry reacted?
‘Mixed signals in the Budget on electric vehicles’
‘November saw a respectable month for new car sales, but now we need a strong December to push us over the 2m mark for the year.
‘Our forecasts predict the new and used car markets will return to pre-pandemic levels next year, despite the mixed signals in the Budget on electric vehicles – more Electric Car Grants but a pay-per-mile tax to come in 2028.
‘In our view, it’s just too soon to be eating into the cheaper running costs that electric vehicles enjoy over petrol and diesel models.’
Ian Plummer, chief commercial officer at Auto Trader
‘Increasingly fragile demand environment’
‘November’s 1.6% fall in new car registrations, even as the market edges over the two-million mark, underlines the pressure the sector has been facing throughout 2025.
‘Although December now requires just 125,726 registrations to meet this threshold, the reliance on heavy end-of-year push activity reflects an increasingly fragile demand environment.
‘With further policy shifts on the horizon and Europe signalling changes to its own emissions rules, the case for an urgent review of the ZEV Mandate is becoming hard to ignore.
‘Industry concerns around the proposed eVED tax also highlight the risk of undermining already-soft EV demand, potentially slowing the UK’s transition at a pivotal time.’
Philip Nothard, insight director at Cox Automotive
‘Momentum is failing to be built’
‘A year-on-year fall for new registrations will spark further concerns within the industry that momentum is failing to be built. Evidently this is a reflection of low consumer confidence in the run-up to the Budget.
‘Following a tax-raising Budget which has pressurised personal finances and applied a direct pay-per-mile tax on electric vehicles (EVs), the risk is that this consumer confidence will be even more dented and the industry will continue to take steps backwards in the coming months.
‘The pay-per-mile tax is especially risky given the continued need to incentivise uptake of EVs.
‘Though extra support was given by the Treasury to the development of the country’s charging infrastructure, it remains to be seen whether this will be sufficient to entice more EV purchases ahead of the 2030 zero emission vehicle mandate.’
John Cassidy, managing director at Close Brothers Motor Finance
‘Clarity and support are now essential’
‘Shaped by hesitation, headwinds, and hard choices, November’s slight decline in new car registrations highlights just how fragile confidence remains.
‘With ongoing cost pressures and changing taxation, many consumers and businesses are delaying significant investment.
‘The Autumn Budget has added further concern, with new pay-per-mile tax on EVs and PHEVs potentially discouraging uptake at a critical stage.
‘In this environment, it is vital the market provides affordable, flexible routes to mobility when purchase feels unviable. Clarity and support are now essential to protect progress.’
Helen Thorne, spokesperson for the Leasing Broker Federation
‘Paramount that there is continued investment into the sector’
‘Despite concerns over the impact of the Budget on drivers, the BEV market saw modest growth in November.
‘In order to continue growth, the government and industry will have to keep making the case for electric and emphasise the investment going into the sector beyond the headline pay per mile tax announced at Budget.
‘On the surface, some consumers may feel that BEVs have increased in cost, but this is not necessarily the case.
‘The new EV mileage charge will increase running costs of electric vehicles, but changes to the Expensive Car Supplement threshold may mean some drivers are actually better off over the course of their lease period.
‘The perception over cost may mean that the pace of uptake slows towards the 2035 zero-emission vehicle transition. This makes the extension to the plug-in car grant scheme even more important, with more cars eligible for a discount.
‘Meanwhile, it remains paramount that there is continued investment into the sector, with a focus on equitable charging infrastructure, so that all consumers have fair and accessible opportunity to charge their vehicles.’
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte
