The UK car market’s transition towards electrification accelerated in 2025, but the shift placed significant pressure on used EV values while creating opportunities for new OEM entrant, new data shows.

As revealed in Brego’s 2025 Annual Car Market Insight Report, electric vehicles accounted for 23.43% of 2025 new car registrations, up from 19.56% in 2024 but short of the Government’s ZEV mandate target of 28%.

To close the gap, OEMs relied heavily on discounting and pre-registration, driving a sharp increase in near-new EVs entering the market.

This activity had a pronounced impact on used EV values. Average prices for one-year-old EVs fell by 16.6% year-on-year, while three-year-old EV prices declined by 15.3%, as cheaper models and pre-registered stock flowed into the used market.

Despite concerns that supply could outpace demand, used EVs sold faster in 2025, taking 2.5 days less to sell on average than the previous year.

Brego’s report also sheds light on how the EV transition also influenced wider market dynamics. Elevated pre-registration activity placed downward pressure on late-plate pricing more broadly, contributing to margin pressure for dealers already facing higher labour, refurbishment and financing costs. While consumer demand remained relatively resilient, many dealers worked harder to maintain profitability, with consolidation and site closures evident across the sector.

At the same time, 2025 marked a turning point for brand competition. Chinese manufacturers captured 6.4% of the UK car market, up from 1.23% in 2024, supported by competitive EV pricing and growing model choice. Brego expects Chinese brands to become increasingly visible in the used market as volumes cycle through over the next few years.

Rupert Pontin, head of insight and communications at Brego, said: “The EV transition was the defining force in the UK car market during 2025. What the data shows is a market adapting to structural change rather than one under stress. EV demand continued to grow, but pricing, pre-registration and cost pressures reshaped how both new and used markets behaved.

“At the same time, the rapid emergence of Chinese brands and the pressure on dealer profitability underline just how much the competitive landscape is changing as we move into 2026.”

The full 2025 Annual Car Market Insight Report is available now via the Brego website.