The United Kingdom’s new car market rebounded strongly in 2025, reaching 2,020,520 registrations – marking the first time the industry has exceeded two million units since 2019. This growth, confirmed by the Society of Motor Manufacturers and Traders (SMMT), signals a sustained recovery after several years of disruption.
Electric Vehicle Growth Fuels Market Expansion
Electric vehicles (EVs) played a crucial role in this resurgence, with registrations reaching nearly half a million (473,348) in 2025 alone. This figure surpasses the total EV sales from both 2021 and 2022 combined, demonstrating rapid adoption. EVs claimed a significant 32.2% of the market in December, highlighting a seasonal trend where buyers prioritize zero-emission vehicles towards the end of the year.
Hybrid and Plug-in Hybrids Gain Traction
Beyond pure EVs, hybrid electric vehicles (HEVs) saw a 7.2% increase in sales, capturing 13.9% of the market. Plug-in hybrid electric vehicles (PHEVs) were the fastest-growing powertrain, with volumes up 34.7% to 11.1% of registrations. This suggests that consumers are increasingly open to electrified options, with hybrids serving as a transition for those not yet ready for a full EV commitment.
The Decline of Internal Combustion Engines
Despite the growth in electrified vehicles, internal combustion engine (ICE) cars – petrol and diesel – still dominate at 51.5% of the market. However, this represents a shrinking majority as demand for EVs and hybrids accelerates. The trend is clear: ICE vehicles are losing ground, and the automotive industry is undergoing a fundamental shift.
The UK’s car market recovery is primarily driven by growing EV adoption, but hybrids play a supporting role. These numbers confirm the ongoing transition toward electrification, which will likely accelerate as charging infrastructure improves and EV prices become more competitive.
