9:29 am, May 6, 2025
Tax hikes on new cars took their effect in April as registrations slumped by over 10%, the industry’s trade body has said.
Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that 10.4% fewer new cars were registered last month compared to April 2024, with 120,331 rolling out of showrooms.
The organisation blamed a number of factors for the slump including the hike in VED on some cars, particularly on new EVs, which for the first time were affected by the Expensive Car Supplement tax and lost their VED exemption.
This caused many ‘shrewd’ buyers to make their purchases before the deadline, the SMMT said.
The late timing of Easter this year also meant there were fewer working days in April compared with the same month in 2024.
Pure battery electric new cars reached a market share of 20.4% in April, up from 16.9% a year earlier, but still behind the ZEV Mandate target of 28%, suggesting ‘demand remains well below ambition’ said the SMMT.
Meanwhile, registrations of petrol and diesel cars fell by 22.0% and 26.2% respectively, while all sales types fell, with private, fleet and business demand down 7.9%, 11.9% and 10.9% respectively.
Again, the SMMT called on the government to slash VAT on new EVs, equalise VAT on public charging to that of home charging, and amend the VED Expensive Car Supplement.
The Kia Sportage was the month’s best-seller, totalling 3,514 units, followed by the Ford Puma (3,311) and the Vauxhall Corsa (2,376).
The Puma remains the year-to-date top-seller with 18,241 units to its name, with the Kia Sportage (16,380) and the Nissan Qashqai (13,989) trailing in second and third respectively.
Commenting on the data, SMMT chief Mike Hawes said: ‘April’s performance is disappointing but expected after March’s surge.
‘Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition.
‘Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.
‘However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch.’
