The UK’s new car market recorded its strongest June performance since 2019, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Registrations rose by 6.7% year-on-year to 191,316 units, marking the second consecutive month of growth across the country.
The positive June results helped lift performance across the first half of 2025 to 3.5% above the same period last year. However, the market still lags 17.9% behind pre-pandemic levels, showing there’s still some way to go in a full recovery.
Wales Registers a Dip
Despite strong nationwide growth, the picture in Wales was less encouraging, with 5,818 new cars registered in June, representing a 4.17% decrease on the same month last year. This figure also sits 14.4% behind June 2019 levels, underlining the region’s slower return to form.
Fleet Sales Lead the Way
Much of the UK-wide growth was driven by fleet demand, which increased by 8.5% to 114,841 units. In contrast, private retail demand rose more modestly at 5.9%, totalling 71,616 units – just under four in 10 new car sales. Business registrations, however, declined -15.8%, reflecting wider economic caution and uncertainty.
Electric Vehicle Sales Surge – But at a Cost
Electric vehicles (EVs) continued their upward trajectory, with battery electric vehicle (BEV) registrations jumping by 39.1% to 47,354 units – making up 24.8% of the market. Plug-in hybrids (PHEVs) also performed well, up 28.8%, while hybrid electric vehicles (HEVs) saw an 8.5% decline.
Combined, electrified vehicles now account for 48.5% of all new registrations. Petrol and diesel models, though still making up just over half the market at 51.6%, are in clear long-term decline.
Despite the promising EV growth, SMMT Chief Executive Mike Hawes warns that the figures are being propped up by substantial manufacturer discounting, totalling £6.5 billion over the past 18 months. He stressed that without greater government incentives, the UK may fall short of its 28% BEV mandate for 2025, with current share sitting at 21.6%.
Industry Leaders Call for Action
A recent SMMT survey of industry leaders revealed that 55% of automotive CEOs believe the UK is significantly behind target to meet its 2030 ban on new petrol and diesel-only car sales.
Proposed solutions include:
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Removing Battery Electric Vehicles from the Expensive Car Supplement (ECS)
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Reducing VAT on EVs and public charging
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Introducing stronger purchase incentives for private buyers
Without such measures, leaders argue, the transition to zero-emission motoring – and the UK’s broader climate ambitions – could be under serious threat.
Top 10 Best-Selling Cars in June 2025
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Nissan Qashqai
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Ford Puma
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Tesla Model Y
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Vauxhall Corsa
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MG HS
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Tesla Model 3
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Kia Sportage
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Volkswagen T-Roc
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Nissan Juke
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Peugeot 2008
