The UK new car market experienced a modest downturn in November, with new registrations falling by 1.6% to 151,154 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). This marks the sixth decline this year and comes amid fresh government proposals for electric vehicle taxation.
The overall dip was largely driven by private buyers, whose demand fell by 5.5%, while fleet registrations edged up marginally by 0.2%. Business buyers, historically a smaller segment of the market, posted an 18.0% increase, providing a small offset to the overall decline.
Electrified Vehicles Continue to Lead Market Share
Despite the slight contraction in total sales, electrified vehicles maintained a dominant presence. Battery electric vehicles (BEVs), buoyed by the Electric Car Grant, captured 26.4% of the market, slightly ahead of last November’s 25.1%. However, volume growth of just 3.6% represented the weakest monthly increase for BEVs in nearly two years.
Hybrid electric vehicles (HEVs) also recorded modest gains, rising 1.3% to make up 13.1% of the market. The fastest-growing segment remained plug-in hybrids, which grew 14.8% and now account for 11.9% of registrations. Overall, electrified vehicles achieved a record market share for the year at 51.4%, leaving petrol and diesel models as a minority for the third consecutive month.
BEV Year-to-Date Growth Still Behind Government Targets
In the first eleven months of 2025, 426,209 battery electric vehicles joined UK roads, giving BEVs a 22.7% year-to-date market share. While this is a significant milestone, it still falls short of the government’s 28% annual target, highlighting the need for continued support and consumer incentives to meet net zero ambitions.
Government Policy Could Threaten EV Momentum
Last week’s Budget offered several measures to bolster the electric vehicle transition, including additional funding for the Electric Car Grant, an increased threshold for the VED Expensive Car Supplement, and greater investment in charging infrastructure. However, the introduction of a “pence per mile” electric Vehicle Excise Duty (eVED) has sparked concern across the industry.
Mike Hawes, SMMT Chief Executive, warned: “Even in a fragile market, zero emission vehicle uptake continues to rise, which is exactly what we need. But the weakest growth for almost two years – ahead of government announcing a new tax on EVs – should be seen as a wake-up call. Sustained increase in demand for EVs cannot be taken for granted. We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of government and industry will be thwarted.”
Outlook for the UK Car Market
While overall market volumes remain fragile, the sustained dominance of electrified vehicles demonstrates the UK’s gradual shift toward zero-emission mobility. The coming months will be crucial, as government policies and incentives play a decisive role in maintaining the momentum needed to achieve long-term net zero targets.
With private buyer confidence already showing signs of weakness, industry leaders stress that a supportive regulatory environment is essential to prevent the EV transition from stalling at a pivotal moment.
