The UK’s new car market saw a 10.4% decline in April, with 120,331 units registered, as per the Society of Motor Manufacturers and Traders (SMMT).
This marks the sixth decline in seven months, reflecting economic challenges and reduced consumer confidence.
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Registrations were 13,943 less than the previous year and 25.3% below April 2019 levels.
It was also impacted by the late timing of Easter, resulting in fewer working days.
Additionally, changes to vehicle excise duty (VED), including the expensive car supplement affecting many new electric vehicles (EVs) from 1 April, led to a surge in March transactions as buyers anticipated tax increases.
Sales registrations dropped in all categories, with private sales down by 7.9%, fleet by 11.9%, and business by 10.9%.
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By GlobalDataFleet buyers drove activity, accounting for six in ten registrations.
Hybrid electric vehicles (HEVs) saw a 2.9% decline, while petrol and diesel registrations fell 22.0% and 26.2% respectively.
However, plug-in hybrids (PHEVs) rose 34.1%, and battery electric vehicles (BEVs) increased 8.1% to 24,558 units, capturing 20.4% of the market.
The market now offers over 130 BEV models, including more affordable options, due to significant manufacturer investment.
Year-to-date, the new car market is up 3.1%, with BEV registrations up 35.2%, pushing market share to 20.7%.
Despite this growth, BEVs remain below the 28% target required by market regulations.
Government incentives are crucial to boost volumes. Measures such as halving VAT on new EV purchases, amending the VED expensive car supplement (ECS), and equalising VAT on public and home charging could encourage hesitant buyers to opt for electric vehicles.
SMMT chief executive Mike Hawes said: “April’s performance is disappointing but expected after March’s surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition.
“Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers. However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch.”
The latest market outlook revises 2025 new car registrations to 1.964m units but 2026 expectations remain below two million for the seventh consecutive year.
Market share expectations for new BEV registrations remain steady, with a slight downward revision from January’s view by 0.2% points to 23.5% for this year and 0.3% points to 28% next year, compared to the Zero Emission Vehicle Mandate targets of 28% and 33% respectively.
