10:01 am, September 4, 2025
New car registrations slumped by 2% in August, as dealers battled the traditional summer slowdown.
That is according to new data from the SMMT which has revealed that a total of 82,908 new cars were registered in the eighth month of the year.
The figure is 1,667 units down on the same period last year, when 84,575 new cars were registered.
The SMMT says that fleet uptake dominated the month, accounting for 59.1% of all new vehicles reaching the road despite a 4.6% reduction in volumes.
Uptake by private buyers grew by a marginal 0.7%, while the business sector rose 41.6%, which equated to fewer than 500 additional units.
When it came to EVs, new manufacturer incentives, teamed with the government’s new Electric Car Grant, resulted in a 14.9% rise in BEV sales.
The powertrain also reached a market share of 26.5% – the highest this year and the fourth highest on record.
The only fuel-type to perform better in August were plug-in hybrids, which rose by 69.4% to deliver an 11.8% market share. Hybrid electric vehicle uptake, meanwhile, fell by 13.9% to account for 11.4% of the market.
For the year as a whole, new car registrations now stand at 1.265 million – their highest level for five years but still 16.7% down on pre-pandemic levels.
The Ford Puma was the month’s best-seller with 2,457 registrations to its name, followed by the Kia Sportage (1,785) and the Tesla Model Y (1,650).
The Puma remains the year-to-date leader with 33,221 registrations, ahead of the Sportage (29,279) and the Nissan Qashqai (25,571).
Going forward, experts are backing September’s new plate day to drive increased demand in the coming month.
Mike Hawes, SMMT chief executive, said, ‘August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive.
‘September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.
‘There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric.
‘With more models being added to the Government’s Electric Car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.’
How has the industry reacted?
‘Consumer interest remains strong’
‘New car sales overall are always softer in August as many buyers simply choose to hold off for the new September registration plates. But consumer interest remains strong judged by visits to our new car platform, which were up around 4% versus July, and 13% on last year.
‘The government’s £650 million Electric Car Grant helped reignite consumer interest for EVs, with advert views for new EVs under £37,000 virtually doubling overnight. Consumers are keeping a close watch and as more eligible models receive the grant, we’re seeing them attract more attention on our platform.
‘As brands and retailers ramp up their marketing machines to entice buyers and the summer distractions fade behind us, we fully expect this interest to translate into sales in the coming months.’
Ian Plummer, chief commercial officer, Auto Trader
‘Chinese brands are standing out’
‘Electrified models continue to attract more interest on the Carwow platform than petrol or diesel models, making up 58% of the enquiries that were shared with our dealer partners last month.
‘Battery electric vehicle (BEV) enquiries were up 70% year-on-year and plug-in hybrids up 27% over the same period, reflective of the pattern seen in today’s SMMT figures.
‘The government’s Electric Car Grant has reduced the cost of relatively few BEVs, and so far, only two have been eligible for the full £3,750.
‘Instead, the main catalyst for BEV sales seemingly continues to be OEM-led incentives – many of which were introduced as a reaction to the tough eligibility criteria.
‘BYD, for example, recently introduced five years of free servicing and an extended battery warranty, which helped increase enquiries volumes for its models on Carwow by 508% year-on-year in August.
‘Other Chinese brands are standing out, too. The Jaecoo 7 was the most configured and enquired on model on Carwow in August, and with the imminent arrival of its smaller sibling, Jaecoo 5 could be one to watch.’
Philipp Sayler von Amende, chief commercial officer, Carwow’s Get Your Car
‘Interest in electric vehicles is accelerating’
‘Interest in electric vehicles is accelerating, and we’re seeing more drivers turn to used EVs as a cheaper way to switch to electric.
‘Since the government announced its new Electric Car Grant, we’ve seen a jump in EV enquiries, showing growing interest across the board.
‘To keep the momentum going, we need continued collaboration between government, dealers and leasing providers to support all parts of the EV market.’
Nick Williams, managing director, Lex Autolease, part of Lloyds Banking Group
‘Consumers holding back to secure a 75 plate’
‘August saw a year-on-year decline in new car registrations, with the plate change in September causing consumers to hold back their purchases to secure a 75 plate.
‘September’s figures, in what is typically the second biggest sales month of the year, will therefore give a better indication of the health of the market and a barometer of consumers’ confidence in purchasing new vehicles.
‘The recent government announcement on which cars will be eligible for EV grants provided much-needed clarity for consumers and manufacturers alike.
‘Whilst this is a positive step in the right direction, it will hopefully encourage further grants in the future so that more consumers consider the switch to electric.
‘As well as price incentives, the need for equitable EV charging remains paramount for those without access to off-street parking.’
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte
‘We are still woefully behind ZEV mandate targets’
‘While today’s figures show some positive momentum, the reality is we are still woefully behind ZEV mandate targets, and the mishandled Electric Car Grant is creating more confusion than confidence among motorists.
‘With only two models qualifying for the full £3,750 discount and muddying last-minute rule changes, the botched scheme rollout risks stalling EV sales when affordability and choice matter most.
‘Urgent action is needed: clear criteria, broader eligibility, and support for used EVs. Without this, the UK’s EV transition could remain stuck in the slow lane.’
Jon Lawes, managing director, Novuna Vehicle Solutions
