The UK witnessed a 1% decline in new car registrations in February 2025 compared to the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).
While the country registered a total of 84,054 new units, the demand for EV surged, with battery-electric vehicle (BEV) registrations soaring by 41.7% to 21,244 units.
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This growth resulted in BEVs capturing a 25.3% market share, a rise from 17.7% in the same period last year.
Plug-in hybrid vehicles (PHEVs) and hybrid-electric vehicles (HEVs) also witnessed growth, rising by 19.3% and 7.9% respectively, year-on-year.
Commenting on SMMT’s new car registration figures, National Franchised Dealers Association (NFDA) chief executive Sue Robinson said: “The decline in the new car market persists, marking the fifth consecutive month of contraction with a -1.0% drop in registrations in February.”
The increase in EV uptake comes as the impending tax changes set for April, which will introduce the vehicle excise duty expensive car supplement (ECS) for many EV models for the first time.
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By GlobalDataThe ECS is expected to add £2,125 over six years to the cost of BEVs with a list price above £40,000.
This measure disproportionately affects BEVs due to their higher production costs, which often result in retail prices above the ECS threshold—a threshold that has not been updated since its introduction in 2017, the SMMT said.
Robinson added: “BEVs are maintaining their strong momentum in 2025, securing a market share of 22.8% year-to-date, slightly below the ZEV mandate quota of 28% for the year.
“Last month, NFDA submitted its response to the Government consultation on proposals to support the UK’s transition to zero-emission vehicles. A key focus of NFDA’s response is the urgent need for incentives, emphasising that stimulating consumer demand is crucial for driving market growth.
“Looking ahead, next month’s figures will see the added impetus of March being a plate change month, which should provide a boost to the market.
“Dealerships are well-prepared for this rapidly changing landscape, and it is important to note that next month will bring several changes, including EVs becoming subject to Vehicle Excise Duty.”
NFDA represents UK’s franchised car and commercial vehicle retailers.
