Looking back at the UK new car market in 2025: ups and downs

Car sales February 2026
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Summary

New car sales in the UK topped the two million mark in 2025, marking the third consecutive year of growth despite economic pressures. The market saw a significant shift toward electrification, with hybrid and battery electric vehicles nearly matching internal combustion engine registrations. While Ford's Puma remained the top-selling model, brands like Kia and Volkswagen showed strong performance against a declining Tesla.


Data source is the Society of Motor Manufacturers and Traders, except where otherwise attributed.

With the media delivering a relentless stream of stories about rising costs, rising poverty and an unpredictable international trading environment, it almost comes as a surprise to learn that new car sales in the UK have actually grown for three consecutive years. In fact, sales in 2025 topped the two million mark for the first time since the Covid 19 pandemic.

In total, 2,020,520 new cars were registered in 2025, a year-on-year increase of 3.5%.

New car registrations by fuel type

Registration totals by fuel types were as follows.

Fuel type New registrations in 2025 Year-on-year change
Petrol 937,938 -8%
Diesel 103,906 -15.6%
Hybrid electric vehicles 280,185 +7.2%
Plug-in hybrid electric vehicles 225,143 +34.7%
Battery electric vehicles 473,384 +23.9%

Adding the totals for petrol and diesel vehicles together we see that internal combustion engine (ICE) vehicles account for 1,041,844 of registrations. Combining the figures for all electric vehicle types (including all hybrids) we see a total of 978,712.

This means that 51.56% of registrations were ICE vehicles and 48.44% of registrations were electric vehicles of one or another type. If current sales trends continue, we will soon see electric and hybrid cars outselling traditional ICE cars.

As of September 2025, according to the government's website, there were 1,759,000 licensed zero emission vehicles on UK roads, accounting for 4.2% of all licensed road using vehicles.

Sales by purchaser type

The market grew across all buyer types, with the biggest increase (8.80%) being in business sales.

Sector Registrations 2025 Year-on-year change Market share 2025
Private 779,587 +4.50% 38.60%
Fleet 1,194,545 +2.60% 59.10%
Business 46,388 +8.80% 2.30%

2025 new cars: top 10 by manufacturer/model

Rank Manufacturer Model New registrations
1 Ford Puma 55,488
2 Kia Sportage 47,788
3 Nissan Qashqai 41,141
4 Vauxhall Corsa 35,947
5 Nissan Juke 34,773
6 Volkswagen Golf 32,478
7 Volvo XC40 30,404
8 MG HS 30,191
9 Volkswagen Tiguan 29,857
10 Hyundai Tucson 28,613

The bigger picture

Although Ford's popular Puma was the biggest selling car in the UK during 2025, Volkswagen was the most successful manufacturer overall.

2025 was a good year for Asian import vehicles. Newcomers Omoda and Jaecoo are becoming popular with UK buyers. Both brands are owned by major Chinese car manufacturer Chery, and the Jaecoo 7 in particular is showing potential as a top 10 seller, possibly in the coming months.

America's Tesla, on the other hand, shows a clear decline, with sales down by 10%. It is unclear how much of the drop is due to a preference for other vehicles and how much is due to Elon Musk's divisive and controversial presence.

Tesla isn't alone: Citroën, Fiat, Honda, SEAT, Suzuki and Toyota all suffered a decline in UK sales during 2025. Nissan suffered a drop of 10% in its overall sales. The Qashqai SUV and the Juke remain popular, but the Qashqai, formerly the best-selling model, has been overtaken in sales by Ford's Puma and Kia's Sportage for two years running.

Stylistically, SUVs remain the most popular body type.

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