The new car market dropped 2.0% in August as the fleet market fell and buyers held out to secure the ’75 plate in September. Traditionally the quietest month
The new car market dropped 2.0% in August as the fleet market fell and buyers held out to secure the ’75 plate in September.
Traditionally the quietest month of the year, August saw overall registrations of 82,908 units, dominated again by fleet demand, which accounted for 59.1% of all new vehicles reaching the road despite a 4.6% reduction in volumes. The ‘Business’ sector – fleets with fewer than 25 vehicles – rose 41.6%, although this equated to fewer than 500 additional units, while registrations to private buyers grew by a marginal 0.7%.
Battery electric vehicles (BEVs) continued to grow, rising 14.9% to 21,969 units and taking a market share of 26.5% – the highest this year and the fourth highest on record.
But the SMMT said the EV rise replicates the pattern in 2023 and 2024, where August’s low overall registration volumes and high fleet concentration resulted in significantly larger BEV shares than those recorded across the rest of the year.
Bigger growth was seen in plug-in hybrid (PHEVs) registrations, which shot up 69.4% to deliver an 11.8% market share. Hybrid electric vehicle (HEV) uptake, meanwhile, fell by 13.9% to account for 11.4% of the market.
Diesel demand dropped again, down 16.6% to 4,307 units and taking just a 5.2% share of the market, while petrol fell 14.2% to 37,373 units and 45.1% share, compared to 51.5% in August 2024.
Top-selling models for the month were again headed up by the Ford Puma and Kia Sportage but also included the Jaecoo 7.
Across the first eight months, the new car market is up 2.1% to a five-year peak of 1.265 million – although it still remains 16.7% down on pre-pandemic levels, with BEV share comprising 21.9%, below 2025’s ZEV mandate target of 28%.
Mike Hawes, SMMT chief executive, said: “August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive.”
But he warned that September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.
Hawes added: “There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. With more models being added to the Government’s Electric Car Grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”
The fleet and leasing sector said the Government’s £65m Electric Car Grant was helping to propel EV demand.
Nick Williams, managing director, Lex Autolease, commented: “Interest in electric vehicles is accelerating, and we’re seeing more drivers turn to used EVs as a cheaper way to switch to electric.
“Since the Government announced its new Electric Car Grant, we’ve seen a jump in EV enquiries, showing growing interest across the board. To keep the momentum going, we need continued collaboration between government, dealers and leasing providers to support all parts of the EV market.”
And Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: “The recent government announcement on which cars will be eligible for EV grants provided much-needed clarity for consumers and manufacturers alike. Whilst this is a positive step in the right direction, it will hopefully encourage further grants in the future so that more consumers consider the switch to electric. As well as price incentives, the need for equitable EV charging remains paramount for those without access to off-street parking.”
But Jon Lawes, managing director at Novuna Vehicle Solutions, said: “While today’s figures show some positive momentum, the reality is we are still woefully behind ZEV mandate targets, and the mishandled Electric Car Grant is creating more confusion than confidence among motorists. With only two models qualifying for the full £3,750 discount and muddying last-minute rule changes, the botched scheme rollout risks stalling EV sales when affordability and choice matter most.
“Urgent action is needed: clear criteria, broader eligibility and support for used EVs. Without this, the UK’s EV transition could remain stuck in the slow lane.”
Looking ahead, all eyes are on September’s plate change and the Autumn Budget to drive growth.
Deloitte’s Jamie Hamilton said: “September’s figures, in what is typically the second biggest sales month of the year, will give a better indication of the health of the market and a barometer of consumers’ confidence in purchasing new vehicles. “
And Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), commented: “Looking ahead, we are likely to see continued pressure on the new vehicle market, due to weak economic growth. We expect electric vehicles sales to continue to increase, however they remain someway off the ZEV mandate targets for 2025. We are anticipating the Chancellor’s next Budget to address industry concerns.”
