The UK’s new car market concluded 2024 with a slight contraction in December, marking the third consecutive monthly decline. A total of 140,786 new cars were registered last month, a -0.2% decrease compared to the same period in 2023, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). While sales to private buyers fell by -1.7%, fleet registrations provided a modest boost, growing by 0.2%. In 2024, private demand struggled with an -8.7% decline when compared to 2023. Overall, the market saw a 2.6% annual increase, with 1,952,778 cars registered throughout 2024, up from 1,903,054 in 2023. Electric vehicles remained a bright spot in an otherwise challenging landscape. Battery Electric Vehicles (BEVs) surged by 56.8% in December, reaching 43,656 units. For the year, BEV registrations rose by 21.4% to 381,970 units, securing a 19.6% market share. Plug-in hybrids (PHEVs) and hybrids (HEVs) also saw gains in December, rising by 4.6% and 10.4%, respectively. Conversely, traditional internal combustion engine (ICE) vehicles experienced declines. Diesel registrations dropped by -27.4%, while petrol sales fell by -20.9%. NFDA Chief Executive, Sue Robinson, commented on the market trends, highlighting the persistent decline in private demand, which fell by -8.7% over the year compared to 2023. Robinson emphasised the importance of continued government collaboration to support the sector as it navigates the transition to zero-emission vehicles. Robinson also pointed to ongoing challenges in meeting the UK’s Zero Emission Vehicle (ZEV) mandate, which will see its quota increase to 28% in 2025. In December, NFDA submitted policy recommendations to the Business Secretary, Jonathan Reynolds MP, advocating for greater flexibility in emissions trading schemes and other measures to ease the transition. Looking ahead, 2025 will bring significant developments, including the introduction of Vehicle Excise Duty (VED) for electric vehicles and higher employers’ national insurance contributions. As the industry adapts to these changes, close cooperation between the government, manufacturers, and stakeholders will be crucial to maintaining growth while meeting ambitious environmental goals.