9:50 am, March 5, 2025
EV uptake grew to account for a quarter of all new car sales in February but the overall market still declined for the fifth month in a row.
That is according to the SMMT, which has today (Mar 5) published its new car registration figures for the second month of 2025.
The data shows a slight dip in registrations, which were down by 1% to 84,054 units, in what is traditionally the slowest month of the year.
The decline was largely driven by a 4% fall in fleet registrations, with the private registrations and the business sectors growing by 4.6% and 3.3% respectively.
That growth means that private registrations took an increased market share of 35.6% in February.
Throughout the month, electrified vehicle uptake continued to grow, with BEV registrations up 41.7% to 21,244 units. That represents a 25.3% market share – well up on the 17.7% achieved this time last year.
The SMMT says that the result was ‘unsurprising’ and put the increase down to upcoming tax changes, which will see many EVs become subject to to the vehicle excise duty expensive car supplement from April.
Despite the rise, EVs’ market share remains stubbornly below the 28% ZEV mandate target for 2025, however it is hoped that this this month’s numberplate change could help to boost uptake further.
Sales are also likely to be aided by continued EV discounts, as manufacturers look to comply with the government’s sales targets.
Experts estimate that the industry has already underwritten more than £4.5bn in discounts over the past 12 months, something the SMMT says is ‘unsustainable’.
Elsewhere, plug-in hybrid vehicles (PHEVs) saw registrations rise by 19.3%, with hybrid electric vehicles (HEVs) up 7.9%.
In response to the data, Mike Hawes, SMMT chief executive, said: ‘Although February’s figures show a subdued overall market, the good news is that electric car uptake is increasing, albeit at huge cost to manufacturers in terms of market support.
‘It is always dangerous, however, to draw conclusions from a single month, especially one as small and volatile as February.
‘With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month – but, long term, EV consumers need carrots, not ever more sticks.’
The best-sellers
The SMMT’s data shows that February’s best-selling car in the UK was the Mini Cooper on 2,074 new registrations.
That was followed by two Teslas – the Models 3 and Y – which sold 1,990 and 1,861 units respectively, despite some experts suggesting that Elon Musk’s political activity was impacting the brand’s popularity.
The Volkswagen Golf took fourth spot with 1,688 registrations, before a string of crossovers and SUVs rounded out the top 10.
These include the likes of the Volkswagen Tiguan (1,635), Nissan Juke (1,623) and Nissan Qashqai (1,527).
In the year-to-date, the Kia Sportage is currently the UK’s most popular new car with 4,992 registrations. That figure puts it just ahead of the Qashqai (4,948), as well as the Vauxhall Corsa (4,625).
Also proving popular in the opening months of the year have been the Golf (4,302), Juke (3,943) and Peugeot 3008 (3,851).
How has the industry reacted?
‘We need more support to boost demand’
‘February was a strong month for new private car sales compared to 2024, a positive sign of rising consumer demand as we enter the key plate change month of March, despite the slight drop in the new car market overall.
‘The jump in electric sales is also encouraging but we’re still well behind the growth we need to see at this stage in the transition, as well as hit to the government’s 28% target on EV sales.
‘The industry is working hard to bridge the price gap between new EVs and traditional cars, but when new electric cars are 24% dearer it is still a challenge for many buyers. We need more support to boost demand.’
Ian Plummer, commercial director at Auto Trader
‘Considerable ground to make up’
‘The latest data from SMMT shows that electric vehicles have continued to eat into market share of internal combustion engines (ICE) – now making up a quarter of the market.
‘While this should be encouraging to the Government, which plans to ban the sale of new ICE vehicles by 2030, there is considerable ground to make up should it be able to realistically achieve this.
‘Continuing to develop charging infrastructure for electric vehicles (EVs) would be a good place to start, but it needs to look at all the ways it can incentivise uptake of a vehicle which UK drivers are yet to be convinced of.
‘This might include leveraging further tax breaks for electric vehicles, including cancelling the planned imposition of vehicle excise duty for EVs in April, and possibly looking at VAT breaks for EVs.’
John Cassidy, managing director of sales at Close Brothers Motor Finance
‘Doesn’t reflect the true picture’
‘February’s new car registrations provide another snapshot of the UK’s growing transition to electric vehicles (EVs), but it doesn’t reflect the true picture.
‘EV sales continue to be dominated by fleets and consumer uptake remains worryingly low, despite growing volumes of enquiries.
‘In February, EV enquiries on Carwow were up 87% compared to February 2024, indicating that an increasing number of consumers are considering making the switch.
‘However, if this increased interest is to be converted into actual sales, the government must step in to provide motorists with more incentives to buy.
‘Car manufacturers are also in need of clarity. The recent decision by BMW to pause a £600m electric upgrade to ‘Plant Oxford’ highlights the general sense of unease surrounding the Government’s approach to electrification.
‘A clear, consistent policy framework – whether that’s working to 2030 or 2035 – will help car makers commit to long-term investment in UK manufacturing.’
Philipp Sayler von Amende, chief commercial officer – Get Your Car, at Carwow
‘Wider economic pressures could temper expectations’
‘A slowing in vehicle production and weaker consumer demand in UK and Europe has led to another dip in vehicle sales in February. This will further compound pressures for manufacturers who are already facing cost increases due to National Insurance Contributions.
‘However, it’s encouraging to see the continued growth of battery electric vehicles increasing market share.
‘Pent up demand for the 25 plate and ongoing incentives should provide a boost to new car registrations in March but wider economic pressures could temper expectations.
‘There is hope that the government’s recent consultation on the ZEV mandate will deliver clarity for the industry.
However, successfully navigating the next phase of the mandate and beyond will require a coordinated approach – manufacturers, charging point operators, finance providers, and government bodies must be enabled to work together in addressing the remaining barriers to EV adoption.
‘This will ensure a smooth transition to a cleaner, more sustainable future for the UK automotive sector.’
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte
