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April 2025 proved to be a month of mixed fortunes for the UK’s new-car market. Overall sales dipped, but electric vehicles (EVs) once again managed to buck the trend, strengthening their foothold in a market that is clearly in a transitional phase.
According to the latest figures, UK new-car registrations fell by 10.4% year-on-year in April, with 120,331 units sold. Several factors played their part, from the timing of Easter to recent changes in vehicle taxation. But while petrol and diesel sales lost ground, battery electric vehicles (BEVs) posted an 8.1% year-on-year increase, securing 20.4% of the market—a clear sign that the shift to electric is still gathering pace.
Plug-in hybrids (PHEVs) also enjoyed a strong month, up 34.1% year-on-year, suggesting that buyers looking for a halfway house between petrol and full EV are still out in force. Hybrids (HEVs), however, slipped by 2.9%, perhaps feeling the squeeze from both sides.
The first culprit in April’s downturn was timing. Easter fell later than usual, which disrupted normal sales patterns. Fewer working days in the month meant fewer opportunities for registrations to be processed.
Then there’s the tax factor. April 2025 saw adjustments to Vehicle Excise Duty (VED), which added extra costs for many buyers. While the increases were not huge in individual terms, they may have been enough to push some customers to delay purchases. Dealers report that some customers brought forward orders into March to avoid the changes, leaving April looking comparatively thin.
Economic uncertainty has also played its part. Inflation remains stubborn, interest rates are still relatively high, and household budgets are feeling the pinch. Big-ticket purchases like new cars are often the first to be delayed in such conditions.
In contrast to the wider slump, EVs continue to attract attention and buyers. BEVs accounted for just over one in five new cars sold in April—an impressive achievement given the overall decline. The growth in plug-in hybrids is also notable, reflecting a continued appetite for vehicles that offer electric driving for short trips but can fall back on petrol for longer journeys.
Industry analysts suggest that much of the EV growth is being driven by fleet sales. Company car tax incentives remain favourable for EVs, and businesses are under increasing pressure to green their fleets. On the retail side, more models at competitive price points are entering the market, making EVs a more realistic option for households.
For buyers considering a new car, April’s figures underline two key points. First, timing your purchase can have a noticeable effect on cost—particularly when tax changes are in play. Many savvy buyers placed orders in March to sidestep April’s VED increases.
Second, the EV market is becoming more competitive. More manufacturers are offering longer ranges, faster charging, and better value, especially as Chinese brands continue their push into the UK. If you’re considering the switch, now might be a good time to take advantage of dealer incentives before demand pushes prices back up.
For dealers and manufacturers, April’s numbers are a reminder of the volatility in the current market. While traditional petrol and diesel sales are slowing, the demand for electrified vehicles is proving resilient. This suggests a continued shift in marketing, stock allocation, and customer education towards EVs and plug-in hybrids.
Used EV stock is also worth watching. As more new EVs are sold, the second-hand market will expand, making them more accessible to a wider audience. Sellers who position themselves early in this space may have a competitive advantage.
Looking ahead, the big question is whether EV growth can offset declines in the rest of the market. May is likely to bring steadier numbers, with Easter out of the way and no immediate tax changes on the horizon. However, economic headwinds remain, and interest rates are still influencing buying decisions.
Fleet sales will likely continue to underpin EV growth, but retail buyers may need additional incentives to make the leap—particularly those without access to home charging. Government policy on charging infrastructure, as well as any changes to EV-related tax benefits, will be key factors to watch in the months ahead.
April 2025 may not have been a banner month for UK new-car sales, but the resilience of the EV market offers a bright spot. For all the challenges facing the industry, the momentum towards electrification shows no signs of slowing.