APRIL SEES NEW CAR MARKET DIP AS NEW TAX RULES COME INTO EFFECT, BEVS REMAIN AT 20.7% MARKET SHARE

“The new car market saw a return to decline in April, with a contraction of -10.4%. It is important to note that this dip coincided with the Easter bank holiday, which may have impacted activity during the month” 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 April, a total of 120,331 new cars were registered, a decrease of -10.4% from the same period last year. Sales to private buyers were down by -7.9%; fleet registrations were also down by -11.9%.

Battery electric vehicles (BEVs) continue to experience growth, up 8.1% to 24,558 units. Plug-in hybrid (PHEVs) registrations also increased by 34.1% to 14,073 units, and hybrids (HEVs) saw a decline of -2.9% to 16,586 units. In 2025, 144,749 new BEVs have been registered so far, compared to 107,031 units at the same point last year, representing a 35.2% increase.

With sales of electric growing, diesel fell from 8,649 units to 6,381 units (-26.2%), and petrol also saw a drop from 75,334 units to 58,733 units (-22.0%).

Sue Robinson concluded, “BEVs continue their upward trajectory in what has been a strong year so far, with market share remaining at 20.7%. Both fleet and private demand have seen downturns, reflecting ongoing challenges in the market.

“The start of the new fiscal year has brought further pressures, with increases to Employers’ National Insurance contributions and the extension of Vehicle Excise Duty and the Expensive Car Supplement to electric vehicles.

“The Government’s recent changes to the ZEV Mandate reflect several key recommendations from NFDA’s consultation response, including the recognition of hybrids as a transitional solution beyond 2030. This is welcome but we reiterate that more could be done to align the UK with the rest of the world.

“Amidst ongoing economic uncertainty and the potential impact of US tariffs, it is more important than ever that the Government offers clear support and long-term certainty to UK automotive retailers."