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Electric models spur 3.5% car sales growth in the UK

But a new tax on EVs risks sending "mixed signals" to consumers.
Melodie Michel
Electric models spur 3.5% car sales growth in the UK
Photo by CHUTTERSNAP on Unsplash

The UK new car market grew by 3.5% in 2025, largely driven by battery-electric and hybrid vehicles, while petrol and diesel car sales both dropped.

More than 2 million new cars were registered last year, the first time since the pandemic that this threshold was met – and low-carbon options such as hybrids, plug-in hybrids and battery-electric vehicles made up nearly half of the total.

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