2025 BEGINS WITH CONTINUED DECLINE IN NEW CAR MARKET, EVS TAKE MORE THAN A FIFTH OF REGISTRATIONS

“January's results reflect the ongoing decline from late last year, marking four straight months of contraction in the new car market” 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 January, a total of 139,345 new cars were registered, a decrease of -2.5% from the same period last year. Sales to private buyers were down by -0.5%; fleet registrations were also down by -3.7%.Battery electric vehicles (BEVs) saw a sizeable increase, up 41.6% to 29,634 units, to make up a market share of 21.3%. Plug-in hybrid (PHEVs) registrations also rose by 5.5% to 12,598 units, as did hybrids (HEVs) by 2.9% to 18,413 units.

Diesel fell from 9,348 units to 8,625 units (-7.7%), and petrol also dropped from 82,753 units to 70,075 units (-15.3%).

Sue Robinson concluded, “Fleet and private demand continue to see declines. Conversely, BEVs have seen a strong start, taking more than a fifth of new car registrations. It is important to highlight that the ZEV mandate quota for new cars will increase to 28% this year.

“In NFDA’s 2025 Outlook Survey, dealers were concerned with the outlook for 2025, with 71% selecting ‘pessimistic’ in response to how they view the overall trading environment for the year ahead, while 29% were ‘slightly optimistic.’

“Also in the survey, dealers highlighted the need for government support, including incentives such as grants and investments in charging infrastructure. They also stressed the continued benefits of hybrids beyond 2030. These will be highlighted in NFDA’s response to the phase-out date/ZEV mandate consultation this month.

“2025 is expected to bring notable changes for automotive dealers, including an increase in Employers' National Insurance contributions from 13.8% to 15% and the introduction of Vehicle Excise Duty on electric vehicles. The UK automotive sector is a vital sector in the UK and historically NFDA members have been very flexible and resilient to headwinds.”