The UK's new car market has passed a significant milestone, with annual sales climbing above two million units for the first time in six years. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), a total of 2,020,373 new cars were registered in 2025, marking a 3.5 per cent increase on the previous year.
Electric Vehicles Drive Market Growth
The growth was overwhelmingly led by electrified models. Fully electric car registrations surged by 23.9 per cent, with 473,340 new EVs finding homes. This means electric vehicles accounted for 23.4 per cent of all new cars sold. Plug-in hybrid sales rose even more sharply, by 34.7 per cent, while hybrid models increased by 7.2 per cent.
Despite this strong growth, the EV market share fell short of the government's Zero Emissions Vehicle (ZEV) Mandate target of 28 per cent for 2025. The mandated target is set to rise to 33 per cent for 2026. In contrast, sales of traditional diesel cars fell by 15.6 per cent year-on-year. Petrol models, excluding full hybrids, still constituted the largest share of the market at 46.4 per cent, but their sales declined by eight per cent.
Best-Selling Models and Brands
The battle for the top-selling car spot was won by the Ford Puma, with 55,487 registrations. It was followed by the Kia Sportage (47,788) and the British-built Nissan Qashqai (41,140).
In the electric vehicle segment, Tesla maintained its dominance in the UK. The Tesla Model Y and Tesla Model 3 were the nation's two best-selling EVs in 2025, despite Tesla's global sales dipping by nine per cent and the brand being overtaken by China's BYD as the world's top EV maker. BYD, which only entered the UK market three years ago, did not place any models in the top ten best-sellers list. However, with 51,422 sales, it became the sixth biggest car brand in the UK by volume.
Industry Calls for Government Support
The SMMT has used the publication of the 2025 figures to urge the government to take action to support the automotive sector's transition. Mike Hawes, Chief Executive of the SMMT, described the two-million milestone as a "reasonably solid result" given challenging economic conditions.
However, he warned that the pace of EV uptake, while positive, remains "too slow and the cost to industry too high." Hawes pointed to policy inconsistencies, citing the introduction of a new EV tax, additional charges for EV drivers in London, and the high cost of public charging as sending "mixed signals" to consumers, despite the existence of the Electric Car Grant.
The SMMT is calling for the government to bring forward its planned review of the ZEV Mandate. The trade body argues this is crucial to align the UK's transition with international competitiveness and to ensure the market remains an attractive proposition for investment. "Government should... act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition," Hawes stated.
