More than two million new cars were registered in the UK during 2025: the strongest market performance since 2019.
According to data from the Society of Motor Manufacturers and Traders (SMMT), new car registrations were up 3.5 percent compared with 2024, despite ongoing cost-of-living concerns.
Notably, electric cars witnessed a substantial rise in popularity, with 473,348 EVs registered during the year. Compared to 2024’s total of 381,970, this represents an increase of 23.9 percent.
Overall, EVs accounted for almost a quarter (23.4 percent) of total market share, with more new electric cars registered than in 2021 and 2022 combined.
This made the UK the second largest market for new electric cars in Europe. However, EV market share was still below the government’s Zero Emissions Vehicle (ZEV) mandate target for 2025 of 28 percent.
A record year for electric cars
The government’s Electric Car Grant (ECG) scheme, launched in July 2025, will undoubtedly have contributed to increased uptake for electric vehicles.
A number of car manufacturers created their own incentives to attract customers, too. With eligibility for the ECG taking time to be confirmed, this may have resulted in the 32.2 percent market share for electric cars in December 2025.
Across the EV market, the Tesla Model Y emerged as the most popular new vehicle, with 24,298 examples registered. Just behind was the Tesla Model 3, with 21,188 hitting the road during 2025.
It proves that Tesla retains a considerable share of the electric vehicle market, despite research suggesting Elon Musk’s activities have negatively impacted the marque’s image.
Ford Puma beats Kia Sportage again
Despite the December sales surge, electrified vehicles (which includes hybrids) just missed taking a majority market share during 2025. Hybrid models accounted for 13.9 percent of new registrations, with plug-in hybrids the fastest-growing powertrain choice, on 11.1 percent.
Petrol-powered cars claimed 46.4 percent of the new car market, down by eight percent compared to 2024. Diesel models represented just 5.1 percent of sales, continuing the fuel’s ongoing decline in popularity.
For the third year in a row, the Ford Puma emerged as the most popular new car of all. Some 55,488 examples were registered throughout 2025, an increase of more than 7,000 Pumas from the year before.
Yet again, the Kia Sportage family SUV made do with the silver medal, with 47,748 cars finding homes across the country. This also represented a small growth in sales compared to 2025.
The Nissan Qashqai, Vauxhall Corsa and Nissan Juke completed the UK top five. Again, SUVs and crossovers dominated the automotive sales chart, making up eight of the top 10 cars. Only the Corsa and Volkswagen Golf bucked the trend.
Government should ‘act urgently’ on EVs
The SMMT notes that, at present, only around a quarter of electric cars are eligible for the ECG. Automotive manufacturers subsidised the sale of EVs to the tune of around £5 billion during 2025.
Mike Hawes, chief executive of the SMMT, commented: “The new car market finally reaching two million registrations for the first time this decade is a reasonably solid result amid tough economic and geopolitical headwinds. Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high.
“Government has stepped in with the Electric Car Grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals.
“Given developments abroad, government should bring forward its review and act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition.”
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