New car registrations stall in July – According to SMMT latest Figures

Latest UK new registrations at the end of July 2025

• The new car market stalled in July with registrations falling -5.0% to 140,154 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The performance was the weakest for the month since 2022 and was 10.8% lower than in 2019, prior to the pandemic, demonstrating the market’s volatility and the broader economic setting.
• Bucking the wider market performance, registrations of plug-in hybrid electric vehicles (PHEVs) rose 33.0% and battery electric vehicles (BEVs) 9.1%, although the latter is modest in comparison with the 34.6% increase recorded for the first half of 2025. July was the second weakest month of BEV growth this year, after April’s tax changes distorted the market in that month.
• The newly announced Electric Car Grant (ECG) provides a welcome and much-needed fiscal incentive for BEV uptake, but full model eligibility has yet to be confirmed, causing some buyers to hold off pending confirmation of which vehicles will qualify for a discount of up to £3,750. BEV market share reached 21.3%, up from 18.5% in the same month last year, but remains short of the 28% required by the ZEV Mandate, demonstrating the importance of accelerating uptake over the remainder of the year.
• Year-to-date, the overall market remains up 2.4% at 1.18 million units, including more than a quarter of a million BEVs, thanks to a plethora of attractive new models and substantial manufacturer discounting. July’s decline is expected to be temporary, with the latest market outlook – undertaken before eligible ECG models were confirmed – revised up to 1.9 million units for 2025, with BEV volumes revised up marginally too and expected to take a 23.8% share.

Statistics and commentary from SMMT