Segment: Professional Services

As the UK adopts incentives for battery-electric vehicle (BEV) purchases, the market suffered another decline in new-car deliveries last month. Autovista24 special content editor Phil Curry examines the situation.

The UK’s new-car market fell back into decline in July, as the country’s rollercoaster registrations ride continued.

In July, 140,154 new models were registered, according to data from the SMMT. This was a 5% decline compared to the same month last year. The fall comes despite the announcement of new incentives aimed at boosting the sales of BEV models.

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Demand from private buyers fell by 3.2% to 51,646 units in the month. Meanwhile, fleet registrations also declined, with 85,594 units representing a 6.5% drop. Deliveries in the lower volume business sector climbed 10.4% to 2,914 units. 

Across the first seven months of the year, UK registrations were up 2.4%. This was thanks to a strong performance in March, with further increases in May and June. In total, 1,182,373 units have been delivered so far in 2025.

Will incentives provide benefits?

The UK government announced a new incentive scheme for the purchase of new BEVs, which became available during July.

The plans require manufacturers to nominate their passenger cars and light-commercial vehicles to be eligible. A split-tier incentive scheme means models will either qualify for a discount of £3,750 (€4,299) or £1,500.

The grant level is based on strict sustainability criteria. Carmakers must have committed to a science-based target on emissions. Specifically, a goal to cut greenhouse gas emissions in line with the Paris Agreement on climate change.

According to the Independent, manufacturers will need to demonstrate their vehicles meet minimum technical requirements. They must also submit details about the manufacturing process and have a net-zero target in place.

The carbon emissions of electricity grids in the manufacturing location will also be important. This will count towards an environmental score assigned to the vehicle assembly and battery production location. A weighting of 70% is applied to the assessment of CO₂ emissions from battery manufacturing, and 30% to vehicle assembly.

Models will also need to cost below £37,000 to be eligible for the scheme. This is below the government’s expensive car supplement (ECS) threshold of £40,000, which still applies to BEVs.

Incentives momentum is essential

With £650 million applied, the incentive scheme will run until the end of April 2029. The aim is to boost BEV sales at a time when overall registrations remain below 2025’s 28% zero-emission vehicle (ZEV) mandate threshold.

As the UK moves towards the end of petrol and diesel new-car sales in 2030, these targets will get larger. While BEV uptake has improved, it has not hit the levels expected.

‘Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just one in four today, to four in five by the end of the decade,’ commented SMMT chief executive, Mike Hawes.

‘This announcement is a welcome response to consistent calls from the industry for more support, which will be in addition to the substantive subsidies already provided by manufacturers,’ he added.

Manufacturer response to incentives

With reduced prices coming into effect from 5 August, the first models to secure the £1,500 discount are:

• Citroën ë-C3 and Citroën ë-C3 Aircross
• Citroën ë-C4 and Citroën ë-C4 X
• Citroën ë-C5 Aircross
• Citroën ë-Berlingo

With no higher discounts awarded, this highlights the potential difficulty in achieving the required sustainability status for the maximum amount. Some carmakers have already begun including discounts against models at their own expense.

Announcing its support for the scheme, MG introduced a £1,500 discount on certain all-electric models, separate from governmental funding. Smart UK announced its own £1,500 incentive scheme, on top of existing offers. Volkswagen (VW) Group has introduced a £1,500 ‘government guarantee’, providing a discount to buyers while it waits for model eligibility.

Meanwhile, Chinese carmaker BYD has announced its own scheme after what it calls ‘uncertainty surrounding eligibility’ around the government scheme.

‘While BYD has formally applied to be included in the government-backed scheme, the brand may not be immediately eligible,’ the carmaker said. Therefore, it has increased its battery warranty to eight years and has launched five years of free servicing on selected models.

These moves are likely to increase the burden of manufacturer discounting. This already reached around £6.5 billion since the introduction of the ZEV Mandate in January 2024, according to the SMMT.

The government also provided details on plans for £63 million of funding to support at-home charging for households with driveways.

This aims to make it easier for councils to put channels in pavements. Drivers will then be able to run cables from their home to their vehicle parked on the road outside. The funding will also help transition NHS fleets and create thousands of charge points at business depots.

BEV growth slows

The incentives did little to affect BEV uptake in July. While model eligibility is confirmed, private buyers may be holding back, waiting to see which discounts are available.

In the month, BEV registrations increased by 9.1% year on year. This was the second-lowest improvement of the year, and the second time growth has been below 25%. It is also a far cry from the first quarter of 2025, when the total registration rise was 42.2%.

In total, 29,825 new all-electric models took to UK roads last month, 2,490 units more than a year ago. This gave the technology a 21.3% market share. While this was up by 2.8 percentage points (pp), it was still below the ZEV mandate target of 28%.

In the first seven months of the year, BEV registrations increased by 31%, with 254,666 units delivered to customers. This is a rise of 60,235 passenger cars compared to the same period in 2024.

The 21.5% market share was 4.7pp higher than that achieved between January and July 2024. However, this is some way off the ZEV mandate target.

‘Confirming which models qualify for the new BEV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch,’ added Hawes.

‘That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions,’ he added.

Phenomenal PHEV performance

The standout powertrain in the UK during July was the plug-in hybrid (PHEV). It saw registrations increase by 33%, with 17,489 units delivered. This gave the technology a 12.5% market share, up from the 8.9% recorded in the same month last year.

In the first seven months of 2025, PHEVs have seen registrations improve by 31.5%. This means their growth rate is now higher than BEVs. In total, 124,528 units have been delivered, giving PHEVs a 10.5% hold of the market. This is a jump of 2.3pp year on year.

Combining BEVs and PHEVs, the electric vehicle (EV) market saw a rise of 16.9% in July. This equated to 6,830 more models taking to the road. Their share of 33.8% was up 6.4pp compared to the same month in 2024.

In the year to date, EV deliveries were up 31.2%, reaching 379,194 units. A 32.1% market share was up from the 25% recorded in the first seven months of 2024.

Hybrids struggling

Full hybrid (HEV) figures dropped for the second consecutive month and the third time in 2025. Deliveries were down 10% in July with 18,551 units, equating to a 13.2% market share. This was 0.8pp down year on year.

Between January and July, HEVs have seen registrations improve by 6.5%, with 165,328 deliveries. This provided the technology with a 14% share of the market, rising by just 0.5pp compared to 12 months prior.

The monthly market share between HEVs and PHEVs has been narrowing across 2025. The gap between the two powertrains in July was just 0.7pp, while in the year-to-date, PHEV trailed HEVs by 3.5pp. Momentum appears to be firmly behind PHEV powertrains in the UK market at present.

Combining EVs and HEVs, the electrified vehicle market saw a 7.8% improvement in July, with 4,758 more models delivered. This equated to a 47% share of the total, up 5.6pp.

Between January and July, registrations improved 22.5%, with 100,137 more units hitting the road. Its 46.1% share was up from 38.5% seen in the same period during 2024.

ICE continues to drop

While EVs flourish, internal-combustion engine (ICE) figures, which include mild-hybrid powertrains, continued to fall in the UK.

Petrol registrations declined by 14.7% in July, with 66,271 units delivered. However, this figure was still the highest total of any powertrain, even with 11,431 fewer models taking to the country’s roads than July 2024. The performance gave petrol a 47.3% share of total figures, down by 5.4pp.

Petrol is on a downward spiral, suffering declines in each month of the year so far. Figures between January and July were down by 10.1%, with 571,111 deliveries.

However, this is a difference of 63,856 units year on year. This means petrol held 48.3% of the UK market. Its share is still dominant, but down by 6.7pp compared to the same period last year.

Meanwhile, following its slight improvement in June, diesel returned to a decline in July. Figures were down 7.9%, with 8,018 registrations. This was a difference of just 690 units year on year. In terms of market share, diesel now lags well behind other powertrains. Its 5.7% hold in the month was 0.2pp down compared to July 2024.

In the first seven months of 2025, diesel has seen 66,740 registrations, a 10.9% decrease compared to 12 months prior. Its 5.6% market share was 0.9pp down on the same period last year.

These poor performances meant that the overall ICE market fell by 14% in July. It still led the electrified sector, with a 53% share. This was down, however, from the 58.6% market hold it recorded in July last year.

Across the first seven months of the year, ICE registrations were down 10.1%. Its 53.9% market share was still leading but was down by 7.6pp.

The Italian new-car market witnessed a significant year-on-year decline in June, with only one powertrain trending upwards. Could the legacy of incentives be to blame? Autovista24 web editor James Roberts unpicks the reasons behind the figures.

At best, the Italian new-car market has seemingly avoided any serious registrations downturn so far in 2025. Any declines have been small, while March and April saw deliveries improve. It appears this trajectory shifted in June, in what industry trade association ANFIA has labelled a ‘worrying result.’

June saw a total of 132,320 new cars registered in the country, marking a year-on-year decline of 17.4%. This equates to 27,856 units, the largest fall in the year so far. This is a long way from the 6.3% year-on-year growth earned in March.

Looking at the first half of 2025, the inertia is reflected. In the year to date, 854,929 new-cars have been registered, 3.6% down when compared with the first half of 2024. Until June, the year-to-date market had been fairly stable in April and May. There were, however, a lower number of working days in the first six months of 2025, compared with the same period in 2024.

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Reasons for the apparent comparative anomaly are multi-layered. Buoyant Italian new-car registrations in June 2024 were influenced by the roll out of incentives under the Ecobonus scheme. This resulted in a 15.1% year on year boost 12 months ago. Significantly, the introduction of subsidies propelled battery-electric vehicle (BEV) registrations forwards.

Fast-forward to 2025, and while this factor has influenced the negativity, wider issues are at play. One key disrupter is a continued slide in new internal-combustion engine (ICE) registrations. Aligned with this is a wider confusion centred on current electric vehicle (EV) incentives.

ANFIA stated that the Italian new-car market is caught between stagnant demand and low production. The industry body also emphasised the need for government support and clear new incentives. It is hoped that the Ministry of Ecological Transition (MoEES) will clarify subsidies for zero-emission vehicles (ZEVs).

Italian BEV decline

Last month’s slump in BEV registrations is exacerbated when compared with June 2024. This year, the powertrain’s numbers decreased by a sizeable 40.4%, and 5,495 units. This is in contrast with the incentive-boosted period 12 months previously.

The pattern of low overall market share for Italian BEVs continued in June. Hitting 2025’s halfway point, plug-in registrations make up just 7.2% market share, one of the lowest in Europe. 

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Despite this, after the first six months of the year, the BEV market share has still increased. The powertrain holds a 5.2% share, up 1.3 percentage points (pp) compared with 2024. BEVs also carry a 28% increase in registrations over the same period.

More can be done to help BEV registrations in the country. Industry body UNRAE highlight a need for increased availability and policy towards EV charging infrastructure. They highlight that public charging points funded by the PNRR (National Recovery and Resilience Plan) have been reduced from €21,355 to €12,000, leaving €597.3 million in public funds unused. Additionally, a recent tender for charging stations in urban centres, which aimed for over 4,700 stations, only funded 1,400.

‘The system is clearly not working as it should,’ stated Roberto Pietrantonio, president of UNRAE. He issued a cautionary statement, highlighting that the absence of a comprehensive and operational charging infrastructure risks impeding the electrification process. This could cause Italy to lag even further behind other European nations.

Furthermore, Pietrantonio advocated for significant measures to address elevated charging costs, expedite infrastructure development, and ensure more efficient management of remaining resources by the Ministry of Environment and Energy Security (MASE).

PHEVs prevail

June has seen a continued prevalence of the popularity of plug-in hybrids (PHEVs). In total, 9,528 units reached customers.

This underscored a volume increase of 74.2% year on year, as well as a 4.8pp lift in market share to 7.2%. It also marks the highest number of PHEVs registered monthly in Italy so far in 2025.

Looking at the wider plug-in market, encompassing BEVs and PHEVs, a similar trend emerges. Whilst May recorded a 66.1% year-on-year increase in plug-in sales, June endured a 7.1% slide. This is the first time this year the EV market has dropped. However, this is in comparison with the incentive-driven period in 2024.

In the year to date, things remain on a downhill path. Combined, BEVs and PHEV registrations are up 40.7% on 2024, with a 25,885-unit upswing. Whilst this may appear positive, Italy began 2025 with a plug-in share of 65.6%, marking a 24.9pp drop across the first six months of 2025.

Italian hybrid love affair continues

Once again, hybrids, made up of full and mild hybrid powertrains, proved the overriding technology in Italy last month. However, an overall decline of 7.2% was recorded, with 57,102 units taking to the Italian roads in June. Despite this, hybrids held a 43.2% market share in the month, up 4.8pp year on year.

Spanning the first half of the year, hybrids accounted for the largest slice of Italy’s new-car market. They claimed a 44.2% market share, with 377,661 units sold. This is an increase of 6.5pp year on year, while volumes rose 10% across the first six months of 2025.

Combining EV and hybrid totals, the electrified market declined 7.2% last month, with the poor performance of BEVs and hybrids hindering PHEVs strength. The technology accounted for 56.4% of total registrations.

Meanwhile, in the first half of 2025, electrified totals are up 14.8%, with 60,263 more models delivered to customers. This equates to a 54.6% share of overall volume in the six-month period, underscoring its dominance in Italy’s new-car market.

Petrol and diesel down but not out

Petrol power underwent its biggest monthly year-on-year decline in June, plummeting 26.5%. With just 31,421 units registered, the overall market share continues to slide downwards. This equated to a 23.7% share for the month, down 3pp on one year previous.

Following a pan-European trend, diesel joins its ICE bedfellow in a continued fall. The fuel-type has witnessed consistent double-digit spirals in 2025, and June is no exception. A 34.4% year-on-year slide reduced the monthly share to 10.3%.

Combined, petrol and diesel sales dropped 29.1% year-on-year in June. This equals a 34.1% market share, the lowest monthly total recorded in 2025.

This is particularly stark as half of 2025 has now passed. In January, ICE registrations accounted for a 36.4% of overall registrations.

Moving on to June 2025, the overall market share remains at 36.3%. This is just 0.1pp below January’s figures. Therefore, while registrations are down, they appear to have hit a limit. It seems the Italian consumer preference for petrol and diesel will need to be radically shaken if the domestic picture is likely to change and electrify any time soon. 

The UK saw registrations grow for the third time this year, with electric vehicles (EVs) driving the improvement as the petrol decline continued. Autovista24 special content editor Phil Curry examines the latest data.

The UK’s new-car market is heating up. For the second consecutive month, registrations in the UK improved, as the country looks to get its market back on track.

Passenger-car deliveries rose by 6.7% in June, according to the latest data from the SMMT. With 191,316 units making their way to customers. This was the third improvement of the year, and was driven entirely by EVs.

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The country’s market has been in a state of flux during 2025. Carmakers are under pressure to deliver on their zero-emission vehicle (ZEV) mandate targets, despite some buyer reluctance towards the technology. Combined with a decline in internal-combustion engine (ICE) registrations, these challenges have impacted the sector.

However, thanks to a strong March, when the country introduced new registration plates, year-to-date figures have remained positive. At the end of the first half of 2025, deliveries were up 3.5%, with 1.04 million units.

EVs proved the main driver of registrations growth in June. Aside from diesel, all other powertrains experienced declines. It was the second time this year that the technology, made up of plug-in hybrids (PHEVs) and battery-electric vehicles (BEVs) has been responsible for the market’s improvement.

BEVs charge onwards in June

BEVs were the leading powertrain in terms of registrations growth in June. Volumes increased 39.1% to 47,354 deliveries. This equated to a gain of 13,320 units year on year. The technology took a 24.8% market share in the month, meaning nearly one in four cars registered was a BEV. This was up from its 19% share recorded a year previously.

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With no government-backed incentives for BEV purchases in the UK, carmakers are instead offering discounts. According to the SMMT, around £6.5 billion (€7.55 billion) has been spent on discounts since the ZEV mandate was introduced at the start of 2024.

For 2025, the target market share has increased to 28%. Yet in the first six months, BEV registrations accounted for just 21.6% of total deliveries, some way off the requirement. This is despite BEV deliveries increasing by 34.6% compared to the same period last year, with 224,841 units.

‘This level of discounting is unsustainable. The government has acted on the ZEV mandate, tweaking it to remove some of the burden on the industry. But consumer confidence in these new technologies is still not there,’ Mike Hawes, SMMT chief executive, told the press at the recent International Automotive Summit.

‘We would seek still more incentives, for the private consumer, from the government. But what we are getting is disincentives.’

In recent months, BEVs have been required to pay vehicle excise duty (VED) each year. They are also now eligible for the expensive car supplement (ECS). This increases the tax payable if a vehicle is sold for more than £40,000. So, it is likely that the increase in registrations comes at the cost of further discounting.

Strength in PHEVs

PHEVs have also enjoyed an upswing in registrations this year. While volume levels are some way below BEVs, growth has been consistent. June represented the sixth consecutive month of double-digit improvement, as 28.8% more units were delivered. This equated to a total of 21,382 PHEVs which made their way to customers.

The result gave the technology an 11.2% market share. This was up by 1.9 percentage points (pp) compared to June 2024.

With growth throughout the year, it is no surprise that at the end of the first half of 2025, PHEV registrations have improved strongly. With 107,039 units, deliveries increased 31.3%. The powertrain’s market share rose by 2.2pp, to 10.3%.

As PHEVs do not count towards the ZEV mandate, this growth appears to be organic. With more models available, and a potentially shrinking selection for more traditional petrol and diesel vehicles, the market is suddenly more attractive for buyers.

The two strong results for BEVs and PHEVs meant that, combined, EV registrations rose by 35.7% in June to 68,736 units. This equated to an additional 18,098 deliveries year on year. Between January and June, EV volumes improved by 33.5% to 331,880 registrations, with 83,262 more units taking to UK roads.

A fall for hybrids

While EVs gained, full hybrids (HEVs) struggled in June. Unlike other markets, the SMMT does not merge mild-hybrid (MHEV) powertrains together with HEVs, giving a clearer picture of the powertrain’s progress.

For the second time in 2025, HEVs suffered a registrations decline last month. Deliveries fell by 8.5%, with 23,835 units. This left the powertrain with a 12.5% market share, a drop of 2pp year on year.

HEVs have consistently been the UK’s third-best performing powertrain type, behind BEVs and petrol models. However, with the continued strong results for PHEVs, the gap between these two hybrid technologies has been closing in recent months.

June represented the smallest difference between PHEV and HEV market shares so far this year, at just 1.3pp. In comparison, HEVs January share was 4.2pp ahead of PHEV market hold during the same month.

In the year to date, HEVs are up by 9%, with 146,777 registrations. This has given the powertrain a 14.1% market share, up by 0.7pp compared to the first half of 2024.

Adding HEVs into the UK’s EV mix, electrified vehicles were again the dominant powertrain technology last month. With a 20.7% rise in registrations, they accounted for 48.4% of the overall registrations total, a rise of 5.6pp.

In the first six months of 2025, the technology has seen growth of 24.9%. The powertrain grouping also recorded a 7.8pp market share increase to 45.9%.

Rare growth for diesel

Diesel registrations, including MHEVs, increased for the first time since December 2023. However, their monthly improvement was negligible, with a 10,716-unit total translating to a 0.2% rise. This meant just 20 more models were delivered to customers in the month.

Despite the marginal increase, the fuel type’s market share dropped by 0.4pp, to 5.6%.

In the first six months of the year, diesel registrations have declined by 11.3%, as 58,722 units took to UK roads. This means its share of the overall registration total in this period is also 5.6%, down by 1pp compared to the same period in 2024.

Petrol registrations, combined with MHEV powertrains, continued their run of declines, with a 4.2% drop in the month. The fuel type remained the UK’s most dominant powertrain. Paradoxically, June represented its lowest market share of the year, at just 46%. This was down by 5.3pp compared to the same point last year.

Between January and June, petrol registrations have fallen by 9.4%, with 504,840 units delivered. Yet, they still make up the majority of the UK’s new-car market, with a 48.4% share. However, this was down from the 55.4% market hold recorded in the first half of last year.

Combined, ICE deliveries were down by 3.7% in June. This gave the powertrain grouping a 51.6% market share, a drop of 5.6pp year on year.

Across the first six months of 2025, ICE registrations declined by 9.6%, with a 54.1% share down from 61.9% in the same period of 2024. However, this was still 22.3pp ahead of the EV market and led the electrified market by 8.2pp.

As petrol and diesel registrations declined, did battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) spur Italian new-car market growth? Autovista24 web editor James Roberts looks at the figures from May.

May saw 139,484 new vehicles registered in Italy, according to the latest data from ANFIA. This marked a 0.1% decline compared with 2024 and a unit difference of just 189. Despite a month of growth in March, May continued a wider pattern of stagnation.

Across the first five months of the year the country saw 722,704 new cars delivered. This was a drop of 0.5% year-on-year, amounting to 3,751 fewer units.

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The Italian new-car market has proven fragile so far in 2025. Registrations remain below pre-pandemic levels, indicating an ongoing struggle with underlying vulnerabilities and external pressures. The market remained below 2024 heading into the second quarter.

In a market underpinned by significant structural shifts in powertrain preferences, diesel and petrol registrations continued their consistent contraction. This has acted as the primary drag on the overall market throughout the first quarter.

Conversely, the Italian market has witnessed strong BEV and PHEV growth. However, a relatively small market share is having little impact on overall registrations. Hybrids continued to emerge as the dominant powertrain as the year approaches the halfway point, driving combined electrified figures.

EV market not enough

Electric vehicles (EVs) claimed an 11.4% market share in Italy during May, up from 6.8% 12 months ago. However, registrations of new plug-ins amounted to 15,845, marking a 66.1% year-on-year increase.

This brought total EV registrations between January and May to 71,920 units, up 60.9% year on year. Despite the continued growth of EV registrations, the market share remained at just 10% in the year to date. This remains consistently below fellow major European new-car markets.

‘The European comparison sees Italy lagging far behind in the diffusion of electric vehicles, but positive signs are not lacking, and the growing availability of increasingly affordable models represents a possible turning point for the market,’ comments Motus-E president Fabio Pressi, emphasising the importance of activating the new bonuses for electric cars announced by the government very quickly.

The fortunes of EV sales in Italy expose the fragility of the Italian automotive landscape. Sales performance is sensitive to various factors, including incentive instability and low comparative base volumes from the previous year.

EV policy clarity urged

The influence of policy and incentives on EV uptake is a recurring theme across Europe, and Italy Is no outlier. In late December 2023, the Italian government announced the reintroduction of EV purchase incentives under the Ecobonus scheme. Regional incentives also complement national measures by offering additional financial support.

The Italian Ministry of Environment and Energy Security (MASE) recently announced new incentives for zero-emission vehicles. Key to this is the reallocation of approximately €600 million from the PNRR funds originally designated to EV charging infrastructure.

This initiative promotes the replacement of internal-combustion engine (ICE) vehicles with electric ones, targeting both private individuals and businesses. It will be seen whether this can help boost EV market share as the year progresses.

‘The announcement of new incentives for zero-emission vehicles provided by the MASE represents a positive and unexpected development for the market, which could give new momentum to the demand for BEVs, although subject to the conditions of scrapping old vehicles and belonging to two specific ISEE income brackets,’ stated Roberto Vavassori, president of ANFIA.

Digging deeper into the overall performance for May, BEV numbers totalled 7,118. With this 40.8% year-on-year increase, the powertrain’s market share rose by 1.5 percentage points (pp) compared with May 2024. This meant BEVs accounted for 5.1% of new-car registrations last month.

PHEVs enjoyed a delivery surge of 94.4% year-on-year, with 8,736 units registered. However, seemingly significant increases were tempered by a relatively limited 6.3% market share.

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Hybrid market moment

The hybrid markets, including both full and mild, solidified their position as undisputed market leaders.

This powertrain has consistently captured nearly half of all new registrations in Italy since the third quarter of 2021. This indicates a sustained and deeply rooted consumer preference, serving as the primary gateway for electrification.

In May, 60,619 hybrids were registered in Italy. This underlined an 8.7% year-on-year increase, with a sizeable 43.5% share of the market. In the year to date, hybrids claimed a 44.3% market share, with 320,513 vehicles hitting Italian roads.

The popularity of hybrids ensured that electrified vehicles claimed a market share of 54.8%. This was up 8pp on May 2024. Over the first five months of 2025, electrified registrations accounted for 54.3% of deliveries. With 392,433 units registered, this equated to a 20.2% increase compared with the first five months of 2024.

Fossil fuel fall continues

Meanwhile, petrol and diesel vehicles have experienced a sustained and significant decline, acting as a major impediment to overall growth. New-car registration figures for May starkly confirmed this. The month saw another ICE decline of 22.3% year-on-year with 50,578 units.

Splitting the two ICE variants, petrol endured a 19.5% year-on-year decline, plus a continued decline in market share to 25.9%. Diesel registrations have seen an even more severe and prolonged fall. It has consistently been the worst-performing powertrain, suffering serious registration drops.

In May, diesel deliveries slumped by 28.6% with 14,383 units registered and a share of 10.3%. This picture is similar in the year-to-date. The fuel type endured a 31.7% fall compared with 2024, and a market share fall of 4.6pp to 10.2%.

Despite the ongoing tailspin, between January and May 2025, ICE occupied a 36.8% market share. This remained 26.8 pp above plug-in registrations. This affirms some of the complexities facing the Italian new-car landscape. While the EV growth is gradually offsetting the decline in ICE sales, general volumes are not sufficient to drive overall growth.

The UK new-car market rebounded in May amid economic uncertainty and policy changes, making the long-term outlook far from clear. Autovista24 web editor James Roberts assesses the latest data.

In May, the UK new-car market recorded its second month of growth so far this year. The latest data from the SMMT revealed a 1.6% rise in registrations compared with the same month last year. This marks the strongest May since 2021, however, sales remained 18.3% below pre-COVID-19 levels. 

In total 150,070 vehicles were registered. Businesses and fleets powered the market’s growth, with deliveries up 14.4% and 3.7%, respectively. These sectors accounted for 62.6% of all new-car sales. In contrast, private buyer demand continued to weaken, falling for the second month in a row, down 2.3%.

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This promising May follows a disappointing April and a buoyant March, which was boosted by the ‘plate change’ effect. However, recent growth has been tempered by wider economic uncertainty and legislative changes.

Challenges for UK industry

In April, the UK government confirmed new hybrids can be sold until 2035. It also gave carmakers more flexibility around meeting the ZEV mandate targets. This gives manufacturers more leeway to avoid penalties amid economic pressure and global trade challenges.

However, the month also saw the introduction of vehicle excise duty (VED) on battery-electric vehicles (BEVs). Alongside this, the Expensive Car Supplement (ECS) was applied to electric models costing over £40,000 (€47,482). 

In late May, Autocar reported that the UK government was considering changes to the ECS. Proposed amendments look to raise the payment threshold, as many EVs have a price tag of over £40,000. This would help carmakers meet green targets by encouraging buyer adoption. 

Concerns continue

Despite this, concerns remain. Under pressure to hit strict targets, manufacturers have resorted to heavy discounting to shift electrified models.

‘A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles,’ commented SMMT chief executive Mike Hawes.

‘This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development, investments which are integral to the decarbonisation of all road transport,’ he added.

The government will deliver its spending review on 11 June, outlining how much funding will be allocated to public services. The review will also confirm how much will be invested into infrastructure projects and wider transport policy. It is expected that EV-related issues will be key.

‘The impact of pressures such as employers’ national insurance, the extension of vehicle excise duty and the Expensive Car Supplement to electric vehicles will be closely monitored moving forward as well as the uncertainty regarding the blocking or unblocking of US tariffs,’ stated Sue Robinson, chief executive of the NFDA.

‘Looking ahead, we are likely to see pressure on the new-vehicle market, due to weak economic growth. We expect electric vehicle sales to continue to increase, however, they still remain someway off the ZEV mandate targets for 2025. Over many years, franchised dealers have proven their resilience and this current period of economic turbulence is no different,’ she added.

BEV increases continue

BEV registrations grew 25.8% in May, with 32,738 new vehicles taking to the UK’s roads. This pushed the powertrain’s market share up by 4.2 percentage points (pp) to 21.8% in the month.

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Between January and May, the BEV market was up 33.4% year on year, hitting 177,487 registrations. However, a 20.9% market share highlights that the market is still below the ZEV mandate target of 28%.

The SMMT has continued to stress that halving VAT on new electric vehicles (EVs) could put 267,000 more EVs on the road over the next three years. This would apparently cut CO₂ emissions by six million tonnes each year. The industry body is also calling for EVs to be removed from the ECS, as well as aligning VAT on public and home charging.

The availability of charging infrastructure continues to hinder EV uptake. Recently, the UK government announced plans to ease legislation surrounding the building of new charging points. Under proposed changes, drivers will no longer need to submit planning applications to install public or private chargers.

Hybrids prove popular in UK

Full hybrid (HEV) registrations continued to grow in May following the first decline of 2025 in April. Last month registrations of the powertrain grew by 6.8% to 20,351 units. This meant a 13.6% share, up from 12.9% a year ago.

However, it was plug-in hybrids (PHEVs) that really shone the brightest in May. Following a strong result in April, PHEV registrations increased by 50.8%, amounting to 17,898 units. This marked a market share of 11.9%, up 3.9p.

In the year to date, HEV registrations were up 13.2%, with 122,942 units. Meanwhile, PHEV uptake increased by 31.9%, reaching 85,657 deliveries. This meant full hybrids made up 14.4% of the market and plug-in hybrids 10.1%.

The popularity of BEVs and PHEVs boosted the overall electric vehicle (EV) market in May, as it grew by 33.6%. This equated to a 47.3% market share, up from 38.6% from May 2024. In the year to date, EVs captured 30.9% of new-car volumes, up from 23.9%. This was thanks to a 32.9% improvement in registrations, with 263,144 models handed over to customers.

Combining HEV registrations, the UK’s electrified market grew by 24.6% to 70,987 units. These models made up 47.3% of all new-car deliveries. In the year to date, registrations of these models soared by 25.9%, accounting for 45.4% of the market.

This underlines how electrified vehicles have become the primary driver of growth in the market. However, the powertrain grouping has yet to achieve an overall market majority. This highlights the gap that carmakers and policymakers need to work together to bridge.

ICE resilient despite decline

Petrol remained the dominant powertrain technology, albeit with deliveries falling by 12.5%. In total, 71,291 petrol-powered vehicles joined the UK’s roads in May.

The fuel type held a 47.5% market share, down 7.7pp compared to a 55.2% market share in May 2024. Looking at the first five months of 2025, petrol maintained a 49% market share, however, this was down 7.2pp year on year.

Diesel continued its declining trend in May. With a 5.2% market share in May, the fuel type dropped from 6.2% 12 months ago, recording just 7,792 unit registrations. Between January and May 2025, diesel saw the biggest drop of all powertrains in the UK. A total of 48,006 deliveries amounted to a 13.5% drop for the fuel type. Diesel-powered models made up 5.6% of overall volumes in this period, down from 6.7%.

In May, petrol and diesel models accounted for 52.7% of the market with 79,038 units registered. This was equated to a year-on-year drop of 12.8%. The ICE market share was just 5.4pp ahead of the electrified powertrains. This gap has shrunk from the previous month’s deficit of 8.2pp.

As the year approaches the halfway point, combined diesel and petrol registrations made up 54.6% of the market. Across the first five months of 2024, the share was 63%. How long will it be before ICE-powered registrations slip below a 50% share and electrified powertrains take over?

New-car registrations in France took a dive last month, with nearly every powertrain seeing declines, except for hybrids. Autovista24 editor Tom Geggus breaks down the numbers behind the downturn.

With 123,918 units delivered in May, the French new-car market fell by 12.3% year on year. This is according to Autovista24’s latest calculations based on data published by automotive industry body the PFA.

Despite having the same number of working days as May 2024, registrations dropped by 17,378 units, extending the market’s ongoing downward trend. According to AAA Data, the primary reason for this sharp drop was the private channel.

However, fleet registration also fell by 18% as carmakers turned to tactical sales channels to support volumes. This includes methods such as dealer self-registrations, short-term fleet rentals and demonstration vehicles.

Deliveries have fallen every month of the year so far. Registrations were down by 6.2% in January, 0.7% in February, 14.5% in March, and 5.6% in April.

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These consecutive months of decline led to an 8.2% drop in year-to-date registrations. Between January and May, 672,700 new cars were delivered. This means 60,477 fewer units hit the road compared to the same period last year.

Multiple market influences

‘Almost all indicators are in the red for the month of May,’ detailed Marie-Laure Nivot, head of automotive market analysis at AAA DATA.

‘We do not expect a recovery in the registration trend in the coming months. Changes in public policy have made buyers cautious, and opportunists are waiting for the electric leasing announced for September.’

AAA Data highlighted that private buyers are turning away from electric cars, with registrations in this channel dropping by 58%. Meanwhile, fleet purchases of battery-electric vehicles (BEVs) increased by 19%. However, this still proved insufficient.

In an upcoming study, AAA Data will reveal how manufacturers’ offerings are still dominated by petrol. The fuel type accounted for 221 models and 635 different versions last year, far exceeding the number of electric vehicle (EV) options.

This reflects the transitional balance between industrial dynamics and broader decarbonisation goals. It also reveals how product offerings shape the market’s performance.

AAA Data outlined that with slower registrations, manufacturers are favouring strategies to preserve profitability and competitiveness. This is boosting higher value-added segments, such as SUVs, while slowing the disappearance of internal-combustion engines (ICE).

Additionally, changing environmental regulations are increasing uncertainty for carmakers and consumers, in turn hindering electrification. Across the EU, carmakers can now average out fleet emissions between 2025 and 2027 to meet targets.

In May, the French National Assembly also voted to abolish low-emission zones which block older vehicles from urban centres. However, this change still needs to be confirmed by the final adoption of the simplification law.

Hybrids cannot save market

Amid all these complications, the French new-car market saw a definitive winner in May. Hybrids, including full and mild versions, was the only powertrain category to see registrations increase in the month. The technology has recorded a perfect growth streak so far this year.

Recording 54,553 registrations, hybrid deliveries grew by 14.7% year on year. The powertrain grouping captured 44% of the market, up from its 33.7% share in May 2024.

In the year to date, the powertrain accounted for 44.9% of all registrations, jumping from 22.9%. Deliveries grew by 38.3% to 301,880 units.

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This success reflects the transitioning marketplace. Buyers are looking to move on from pure ICE models but are still uncertain about going fully electric. Offering quick refilling times and improved fuel economy, hybrids offer the best of both worlds. But with so many powertrains in decline, hybrids were unable to be able to save the market alone.

EV market troubles

BEV registrations fell by 18.8% year on year last month to 19,414 units. This means all-electric cars have seen deliveries decline in January, February, March and May this year. The powertrain’s share of the French new-car market dropped 1.2 percentage points (pp) to 15.7%.

However, in the first five months of the year, BEVs represented 17.8% of all new-car sales in France. This equated to an improvement of 0.2pp. As registrations dropped by 7.4% to 119,475 units in this period, this reflects a wider market decline.

Plug-in hybrids (PHEVs) saw deliveries fall by 19.8% to 8,180 units in May. The powertrain has yet to escape double-digit declines this year. This meant PHEVs made up 6.6% of the market, down 0.6pp. Across the year to date, the technology saw a delivery drop of 37.4%, taking a 5.6% share, down 2.5pp.

Combined, both powertrains saw registrations fall by 19.1% to 27,594 units. EVs made up 22.3% of all deliveries, down 1.9pp year on year.

Across the first five months of 2025, the EV share fell from 25.7% in the first five months of 2024 to 23.3% so far this year. Registrations dropped by 16.9% in this period, with 156,840 EVs hitting the French roads.

Combining the EV and hybrid results reflects an increasingly electrified market. Last month the category made up nearly two-thirds of all registrations. The 66.3% electrified share was up by 8.5pp from May 2024. Registrations increased by 0.6% to 82,147 units.

In the year to date, deliveries were up by 12.7%, with 458,720 electrified vehicles taking to the country’s roads. This equated to a 68.2% share, up from 55.5% at the same time last year.

ICE continues to melt

Last month the greatest decline was felt by ICE models. Diesel-powered cars saw the largest fall of any powertrain, down 39.3% to 6,925 units. Its market share reached 5.6% from 8.1% in May 2024.

In the year to date, the fuel type felt an even greater drop, down by 43.4% to 31,752 registrations. This is due to consistent declines of over 30% in every month so far in 2025. It claimed 4.7% of the market, down 3pp.

Petrol deliveries decreased by 30.2% to 30,217 units, with the technology making up 24.4% of the French new-car market. This was down from its 30.6% share recorded in May 2024.

In the year to date, the fuel type dropped by 34.3% to 157,100 deliveries. It has yet to manage a decline of less than 27% this year. This meant it held a 23.4% market share, down 9.2pp.

Combined, the two powertrains accounted for 30% of the French new-car market in France in May. Down 8.7pp. Deliveries slumped by 32.1% year on year to 37,142 units.

In the year to date, the decline was more pronounced, with registrations falling by 36.1% to 188,852 units. This meant ICE accounted for 28.1% of deliveries, down from 40.3% at the same point last year.

New-car registrations in Germany fell by a narrow margin during April. On the upside, electric vehicles (EVs) drove volumes. Meanwhile, will the new coalition government help the country’s automotive market? Autovista24 journalist Tom Hooker reviews the figures.

Germany’s new-car market dropped by 0.2% year on year in April, according to the latest data from the KBA. A total of 242,704 registrations were recorded. This equated to a difference of just 398 units year on year.

The result marked the country’s 10^th consecutive month of delivery declines. However, it was still the market’s best performance since June 2024, which was the last month to see growth. Furthermore, last month had 20 working days, one fewer than April 2024.

Commercial deliveries fell by 0.7% in April and took a 66.4% market share. Meanwhile, registrations to private customers increased by 1.1% and accounted for 33.6% of overall volumes.

‘New-car deliveries fell again in April, resulting in a year-on-year decline of 3.3% in the first four months of 2025,’ explained Robert Madas, Autovista Group’s regional head of valuations. This equated to a total of 907,268 registrations in the year to date, a drop of 30,619 units compared to the same period last year.

‘The overall downward trend in new registrations is problematic for the trade,’ stated ZDK vice president Thomas Peckruhn.

Surging BEV market

Battery-electric vehicle (BEV) volumes surged by 53.5% in April, reaching 45,535 deliveries. This was the technology’s highest monthly volume since December 2023, when private incentives ended for BEVs.

The result extended the current double-digit growth streak for BEVs, which started at the beginning of this year. It also matched January’s year-on-year improvement, which was the powertrain’s biggest rise since August 2023. This was another month influenced by the end of subsidies.

Excluding all-electric vehicles from the overall market figure would have resulted in a steeper decline of 7.6%. BEVs captured 18.8% of total new-car registrations, up 6.6 percentage points (pp) year on year. This was also its highest market share since December 2023.

‘A total of 158,503 BEVs were newly registered from January to April, which corresponded to a market share of 17.5%. Compared to the previous year, this was an increase of 42.8%. However, new BEV registrations fell massively in the first months of 2024 after the expiry of the state subsidy,’ highlighted Madas.

In comparison, the technology recorded a drop of 10.8% from January to April 2024. In this period, it accounted for 11.8% of new-car volumes.

PHEV perfection

Plug-in hybrids (PHEVs) were the best-performing powertrain in April, enjoying a 60.7% surge to reach 24,317 deliveries. This marked its seventh consecutive month of growth, with the most recent four double-digit increases. The technology represented 10% of overall volumes, an improvement of 3.8pp compared to April 2024.

In the year to date, PHEVs saw registrations rise by 46.6%, with 88,116 units. It took a 9.7% market share, up from 6.4%.

Combining BEV and PHEV registrations, the EV market increased by 55.9% last month, with 69,852 deliveries. This was the biggest year-on-year plug-in growth since August 2023 and the highest monthly volume since December 2023. The result also marks four months of double-digit growth for the powertrain grouping.

Excluding EVs from the overall new-car market would have resulted in a 12.8% decline. Plug-ins made up 28.8% of total registrations, the grouping’s greatest share since December 2023 and a year-on-year increase of 10.4pp.

In the first four months of 2025, EV volumes surged 44.1%, reaching 246,619 deliveries. This was a gain of 75,494 units compared to the same period one year ago. Plug-ins captured 27.2% of the market, up from 18.2%.

Government’s unprecedented setback

In May, the German government required two rounds of voting to confirm Friedrich Merz as the new chancellor. This was reported by multiple publications, including the Wall Street Journal. An unprecedented setback in the first round meant he failed to secure an absolute majority in the Bundestag.

As written by the Financial Times, this failure in the initial round marked the first time since the formation of the Federal Republic that a chancellor candidate did not receive a majority vote on the first attempt.

Despite the uncertain start, the nation’s automotive industry bodies welcomed the appointment. They went on to outline what changes are urgently needed in the automotive sector.

‘We congratulate the new Chancellor Friedrich Merz! We expect the governing coalition to quickly tackle the urgent structural reforms that are necessary,’ said ZDK president Arne Joswig.

‘In particular, the reduction of bureaucracy, the reduction of the tax burden on companies and the reduction of the persistently high energy prices. One thing is clear, the companies in the automotive industry finally need more entrepreneurial air to breathe again,’ he commented.

New EV purchase incentives?

Last month, the new government announced plans to introduce purchase incentives for EVs, according to Reuters. This may include PHEVs and models fitted with range extenders to boost an EV’s battery. The coalition also promised tax discounts for company cars, including an exemption from vehicle tax for EVs to last until 2035.

However, no start date or timeline has been announced for these measures. ‘This ambiguity unsettles potential buyers at a time when a growth trend in new registrations of BEVs is emerging,’ the ZDK stated.

The overall new-car market is the closest it has been to growth in months. New incentives could help tip registration figures into the positive.

‘The lack of clarity has continued to lead to uncertainty and a reluctance to buy among EV customers in recent months. However, slightly positive signals in new registrations and increased incoming orders in April gave reason to hope that the market could recover somewhat,’ outlined VDIK president Imelda Labbé.

‘The future government coalition must now quickly follow up its vision of ramping up electric mobility with action. We now finally need clarity for prospective buyers concerning the planned subsidy measures,’ she commented.

‘Chancellor Merz must anchor the subsidy for EVs and the reduction of electricity prices in his immediate action programme in terms of content and time. Even before the summer break, it should be clear to every car buyer what long-term costs they will face when buying or leasing an EV,’ Labbé added.

Petrol market continues decline

Registrations of petrol-powered cars slumped 26.4% in April, with 66,814 units. This was the worst year-on-year performance of any powertrain last month. It also continues a streak of declines over 20%, which began at the start of 2025. Removing petrol from the overall market results in an improvement of 15.4%.

The fuel type accounted for 27.5% of the market, a drop of 9.8% compared to 12 months ago. Petrol’s share has fallen consecutively month on month since August 2024. Last month’s performance also marked the powertrain’s lowest share since August 2023.

From January to April, petrol-powered cars suffered a 26.6% drop in registration, with 256,497 deliveries. This equated to a loss of 92,815 units. It represented 28.3% of the new-car market in this period, down from 37.2% in April 2024.

Diesel’s drop

Diesel-powered cars also struggled in April, falling 18.7% year on year with 37,649 registrations. This marks five consecutive double-digit declines for the fuel type. It captured 15.5% of total volumes, a drop of 3.6pp compared to April 2024.

In the year to date, the powertrain endured a 20.9% slump in deliveries, with 140,611 units. Diesel-powered cars took a 15.5% market share from January to April, down from 19%.

Adding together petrol and diesel figures, the internal combustion engine (ICE) market fell 23.8% in April with 104,463 registrations. This was the powertrain grouping’s fifth consecutive month of double-digit declines. The most recent four came in at over 20%. ICE models made up 43% of new-car deliveries, down 13.4pp year on year.

Across the first four months of 2024, ICE-powered car registrations dropped by 24.7%, with 397,108 deliveries. This was a loss of 129,975 units compared to the same period last year. Removing the powertrain grouping from overall volumes would have seen the market improve by 24.25. ICE models took a 43.8% share in the year to date, down from 56.2%.

Hybrid market improves

The hybrid market enjoyed a 12.2% increase in April, recording 67,379 registrations. The result marked eight consecutive months of growth.

The technology captured 27.8% of total deliveries last month, an improvement of 3.1pp year on year. However, this was the lowest hybrid share since July 2024. The powertrain was just 0.3pp ahead of petrol’s share last month, compared to its 1.7pp lead in March.

From January to April, the technology saw volumes rise by 11%, reaching 259,644 deliveries. This gave it a 28.6% market share, up from 24.9% 12 months prior. The hybrid share also sat just 0.3pp ahead of petrol in the year to date.

Swapping positions

Combining the EV total with hybrid figures, the electrified market grew by 30.9% last month with 137,231 registrations. The powertrain grouping accounted for 56.5% of overall deliveries, up 13.4pp compared to 12 months ago.

Electrified models have effectively swapped positions with ICE. The fossil-fuel’s share is now 0.1pp lower than the electrified market’s share from one year ago.

In the first four months of the year, registrations of electrified models improved by 25%, with 506,263 registrations. The strong improvement was driven largely by EVs, gaining 75,494 units in the year to date, compared to hybrid’s 25,670-unit increase. This gave the powertrain grouping a 55.8% share, up from 43.2%.

More electrified options

‘The continued growth of electric and hybrid models shows that there is demand for electrified cars even without purchase incentives. One of the reasons is that the EVs are now offered in every segment. The wide selection of BEVs within a single brand is appealing to more and more customers,’ stated Madas.

‘Furthermore, many EVs have now reached a price range that is close to the level of conventional ICE powertrains. Discounts for both purchasing and leasing are also creating further momentum in the showrooms,’ he noted.

‘Five years after the initial boom due to the significantly increased environmental bonus, many leased vehicles are returning to dealerships and most customers are leasing new EVs again, as numerous dealers report,’ Peckruhn highlighted.

The ‘others’ category, including hydrogen fuel-cell electric vehicles, natural gas and liquified petroleum gas vehicles, E85/ethanol and other fuels, fell by 16.3% in April. The grouping’s total of 1,010 units gave the category a 0.4% market share, a drop of 0.1pp from one year ago.

From January to April, the powertrain grouping recorded 3,897 deliveries, a decline of 31.7% year on year. The category captured 0.4% of overall volumes, down 0.2pp.

Once a pillar of stability in Europe, the UK new-car market is now faltering. April marked its weakest performance since June 2022, raising fresh concerns. Autovista24 special content editor Phil Curry breaks down the latest numbers.

The UK’s new-car market suffered one of its worst results in recent years during April. Latest data from the SMMT shows registrations declined 10.4% in the month. However, several factors combined to cause this drop in deliveries.

The result is the sixth fall in registrations in the last seven months. Only March saw a rise, thanks to the country’s new plate release. The drop in April highlights the frailty of the market, which was one of the strongest in Europe until recently.

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April saw the steepest drop in registrations since June 2022, when supply-chain crisis issues hit deliveries. Since then, there have only been seven monthly declines, as the market built itself back. Yet the dramatic drop last month indicates the potential struggles that lie ahead.

Changing UK legislation

April is often a quieter month for registrations in the UK, following on from the busy period in March. However, volumes were also impacted by a later Easter in 2025, which reduced working days compared to last year.

The month also saw the implementation of vehicle excise duty (VED) on battery-electric vehicles (BEVs). The implementation of VED on BEVs will add around £195 to the cost of new models each year, with this rate reduced to just £10 in year one.

In addition, the Expensive Car Supplement on electric models costing over £40,000 (€47,021) also came into effect. The ECS will see £425 added to the standard VED rate in years two to six of registration, increasing costs further.

This may have impacted consumer confidence in the electric vehicle (EV) market, which has recently been the strongest segment. With May offering a return to a normal working-day comparison, it will provide a clearer picture. This is especially true for assessing recent changes in the BEV market.

Are BEVs faltering?

BEV registrations grew 8.1% in April, with 24,558 units taking to UK roads. While this is a positive outcome for the all-electric market, it is the lowest growth in the year to date. January, February and March all saw registrations improve by over 40%, indicating a significant drop in the market during April.

However, the rise did mean that BEVs took a 20.4% market share in the month. This was up by 3.5 percentage points (pp) compared with April 2024.

The fall may be the result of the implementation of VED and ECS. The exemption from these taxes could have been seen as incentives for BEV purchase earlier in the year. Therefore, some potential buyers may be put off by the additional costs in April.

This could raise concerns amongst carmakers, who are trying to adhere to the UK’s zero-emission vehicle (ZEV) mandate. The government has made it easier to avoid fines by increasing the flexibility within the regulations. However, the target of 28% may still be out of reach for many carmakers.

In the first four months of the year, the BEV market was up 35.2%, with 144,749 registrations. This equates to a 20.7% market share, an improvement of 5pp, but below the ZEV mandate target.

The SMMT has again called on the UK government to help boost the BEV market. It has suggested halving VAT on new EV purchases, scrapping or amending the ECS and equalising VAT on public charging to that levied on domestic options. By doing this, the body believes it will send a strong signal to hesitant buyers.

Mixed results for hybrids

Plug-in hybrids (PHEVS) were the only other powertrain in April to record growth. Deliveries of the technology were up 34.1%, reaching 14,073 units. This gave PHEVs an 11.7% market share, up from 7.8% in April 2024.

In the first four months of the year, PHEVs have achieved consistent growth. Between January and April, the market improved by 27.7%, with 67,759 units delivered. This equated to a 9.7% market share, up 1.9pp.

However, full hybrids (HEVs) struggled in April, recording their first decline of the year. With a total of 16,586 registrations, figures were down 2.9% in the month. However, this was just a difference of 495 units compared to the same period last year.

This was the first drop in the HEV market since November 2024. The UK does not include mild-hybrids in these figures, instead merging them into their respective petrol and diesel counterparts.

In this respect, EVs continue to prop up the UK market, while other powertrains struggle. Despite the decline in registrations, HEVs actually improved their market share, by 1.1pp to 13.8%. This was mainly due to poor performances from other powertrains.

The HEV decline in April was not enough to impact the year-to-date results for the technology. Registrations over the first four months of the year rose 14.6%, with 102,591 units making their way to customers. This meant a 14.6% share of the market, up by 1.4pp.

Electrified market poised to dominate UK

With the positive results for the BEV and PHEV markets, the EV sector saw an improvement of 16.3% in April. This was an increase of 5,421 units, and equated to a market share of 32.1%, up 7.4pp. Therefore, EVs made up nearly a third of UK new-car registrations in April.

Over the first four months of the year, the plug-in market was up 32.7%, with 52,425 more units taking to the road. The 30.3% share was an increase on the 23.5% recorded during the same period in 2024.

Adding HEVs into this mix, the electrified vehicle sector gained 9.8% more registrations last month, for a 45.9% market share. The technology has yet to capitalise on the decline of internal-combustion engine (ICE) registrations. However, it is likely just a matter of time before it becomes the dominant segment.

In the year to date, electrified models were up by 26.2%, as 65,464 more new models were delivered to customers. This gave the powertrain grouping a 45% share of total registrations, up by 8.3pp against the same period last year.

ICE drags market down

The UK new-car market’s struggles this year stem from a sharp drop in petrol registrations. April was the worst month of the year so far, with a 22% decline in deliveries.

In total, 58,733 petrol-powered units took to UK roads, a drop of 16,601 deliveries. This is the 13^th consecutive month of petrol declines, and the worst drop in that period. Even with MHEVs added into their figures, the powertrain is unable to improve its performance year on year.

This may be due to carmakers prioritising HEV and BEV models in their ranges, reducing the availability of petrol models. It seems buyers are turning away from the market in favour of greener options.

Despite its poor performance, petrol still managed to dominate the market. Its share of 48.8%, however, was down by 7.3pp year on year.

Between January and April, petrol registrations declined 10%, with 345,520 units taking to the road. This gave the technology a 49.3% share of the total, a drop from the 56.5% recorded in the same period last year.

Meanwhile, diesel’s decline continued. The fuel type recorded 6,381 registrations in the month, down 26.2%. Its 5.3% market share was a drop of 1.1pp compared to April 2024, making it the worst-performing powertrain in the month.

Over the first four months of the year, diesel has seen deliveries decline 13.2%, with just 40,214 units registered. This gave the technology a 5.7% market share, down 1.1pp.

Combined, the ICE market fell 22.5% in April, equating to 18,869 fewer units. It still led delivery figures, with a 54.1% share of all registrations, although this was a drop of 8.4pp. In the year-to-date figures, ICE was down by 10.3%, with a 55% market share, down 8.3pp.