The UK new car market experienced a slowdown in July 2025, with registrations falling by 5.0% to 140,154 units compared to the same month in 2024. This marks the weakest performance for July since 2022 and is 10.8% lower than the pre-pandemic levels recorded in July 2019. Despite this dip, the year-to-date market remains up 2.4%, with total registrations reaching 1,182,373 units, and the outlook for 2025 has been revised upwards to 1.9 million units.
Market Segments and Buyer Types
Registrations declined across most buyer segments in July:
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Private buyers’ registrations decreased by 3.2% to 51,646 units.
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Fleet buyer registrations fell by 6.5% to 85,594 units.
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Business sector registrations bucked the trend, rising by 10.4% to 2,914 units.
In terms of vehicle categories, only the Dual Purpose, Mini, and Luxury Saloon models recorded growth amid the general decline.
Fuel Type Analysis
The decline in July was driven largely by significant reductions in petrol and hybrid vehicle sales:
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Petrol car registrations dropped 14.7% to 66,271 units.
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Hybrid electric vehicle (HEV) registrations fell 10.0% to 18,551 units.
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Diesel vehicles decreased by 7.9% to 8,018 units.
Conversely, electrified vehicle registrations continued to rise:
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Battery electric vehicles (BEVs) increased 9.1% to 29,825 units, reaching a market share of 21.3%, up from 18.5% in July 2024.
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Plug-in hybrid electric vehicles (PHEVs) surged 33.0% to 17,489 units, raising their market share to 12.5% from 8.9% a year earlier.
Year-to-date registrations reveal even stronger growth for electrified vehicles:
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BEVs grew by 31.0% to 254,666 units.
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PHEVs rose 31.5% to 124,528 units.
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HEVs saw a modest increase of 6.5% to 165,328 units.
However, petrol and diesel vehicles continue to make up over half of the market:
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Petrol registrations declined 10.1% to 571,111 units.
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Diesel registrations fell 10.9% to 66,740 units.
Market leaders in July and Year-to-Date
Top 10 Best-Selling Models in July 2025 (Units Sold)
| Rank | Model | Units Sold |
|---|---|---|
| 1 | Kia Sportage | 4,482 |
| 2 | Ford Puma | 4,409 |
| 3 | Nissan Juke | 3,077 |
| 4 | MINI Cooper | 2,629 |
| 5 | Volkswagen Tiguan | 2,527 |
| 6 | Nissan Qashqai | 2,444 |
| 7 | Peugeot 2008 | 2,434 |
| 8 | Volkswagen T-Roc | 2,258 |
| 9 | Volkswagen Golf | 2,090 |
| 10 | Audi A3 | 2,080 |
Top 10 Year-to-Date Best Selling Models through July 2025 (Units Sold)
| Rank | Model | Units Sold |
|---|---|---|
| 1 | Ford Puma | 30,764 |
| 2 | Kia Sportage | 27,494 |
| 3 | Nissan Qashqai | 24,529 |
| 4 | Vauxhall Corsa | 22,196 |
| 5 | Nissan Juke | 21,604 |
| 6 | Volkswagen Golf | 18,974 |
| 7 | MG HS | 17,793 |
| 8 | Volkswagen Tiguan | 17,750 |
| 9 | Peugeot 2008 | 17,605 |
| 10 | Hyundai Tucson | 17,249 |
These figures are sourced from the Society of Motor Manufacturers and Traders (SMMT) official data for July 2025 UK registration.
Industry Commentary and Outlook
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), highlighted the market’s sensitivity to external economic factors and called for greater consumer certainty to stimulate demand. He emphasized the importance of confirming which electric vehicle models qualify for the new Electric Car Grant, combined with compelling manufacturer discounts, as key to encouraging buyers to switch to zero-emission vehicles.
The government’s new Electric Car Grant program, offering up to £3,750 off qualifying battery electric vehicles, is viewed as crucial to boosting BEV adoption. However, delays in confirming eligibility have caused some buyers to postpone purchases. Additionally, fiscal disincentives like the Vehicle Excise Duty (VED) Expensive Car Supplement are estimated to impose more than £360 million in extra charges on BEVs bought since April 2025, potentially slowing BEV uptake.
Despite the July dip, the SMMT expects the new car market to recover in the coming months, with overall 2025 registrations revised upwards and the BEV market share forecast to rise to nearly 24%. Hybrid and electric vehicles continue to eat into the traditional petrol and diesel market shares, signaling a clear shift towards electrification.
Additional Notes
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Mini achieved a 14.7% increase in registrations in July.
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Luxury saloon registrations surged 114.6%, albeit from a small base.
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Dual Purpose vehicles (mainly SUVs and crossovers) grew 13.9% in July.
In summary, while July 2025 saw a temporary stall in UK new car registrations, the steady growth in electrified vehicles and a revised positive market outlook suggest a strong recovery is underway. The success of government incentives and manufacturer pricing strategies will be critical to maintaining momentum toward the UK’s climate goals and supporting its automotive manufacturing base.
This comprehensive overview captures the key statistics, trends, and expert insights on UK new car registrations from July 2025.
