NEW CAR MARKET RETURNS TO GROWTH IN MARCH, AS EVS RECORD BEST MONTH EVER

Issue
Press Room
Published
April 4, 2025

“March is the most important month in the UK new vehicle market, and it was therefore pleasing to see a marked turnaround for the new car market, following five months of decline. The month saw a 12.4% increase in registrations, as consumers returned to showrooms to purchase new models” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK commenting on the latest SMMT new car registration figures. In March, a total of 357,103 new cars were registered, an increase of 12.4% from the same period last year. Sales to private buyers were up by 14.5%; fleet registrations were also up by 11.5%. Battery electric vehicles (BEVs) continue to experience growth, up 43.2% to 69,313 units. Plug-in hybrid (PHEVs) registrations also increased by 37.9% to 33,815 units, and hybrids (HEVs) saw a rise of 27.7% to 56,161 units. In 2025, 120,191 new BEVs have been registered so far, compared to 84,314 units at the same point last year, representing a 42.6% increase. With sales of electric growing, diesel fell from 23,312 units to 20,967 units (-10.1%), and petrol also saw a drop from 177,585 units to 176,847 units (-0.4%). Sue Robinson concluded, “BEVs have experienced an outstanding first quarter, with year-to-date market share standing at 20.7%. This will need to continue to increase to hit the stretching ZEV mandate targets. Both fleet and private demand have also seen sizeable increases. “Whilst these figures are encouraging, last week’s Spring Statement missed an opportunity in accelerating the electrification of the UK car parc. This transition provides a huge economic opportunity for the UK and the Government needs to be incentivising consumers to purchase a new vehicle, which will drive growth in the UK economy. “Furthermore, with the recent announcement of a 10% tariff on all UK imports to the US earlier this week, followed by the introduction, yesterday, of a 25% tariff on cars entering the US, it is crucial that the Government acts quickly and decisively to safeguard jobs and protect our industry. “These are challenging times for our sector, yet dealerships have consistently demonstrated an unwavering ability to adapt.”

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