By 2025, the UK new-car market is set to see electrified vehicles occupy nearly half of all sales. BEVs, propelled by significant growth and government-led decarbonisation targets, will be the fastest-expanding segment, HEVs will cement their place as a mainstream choice for urban drivers, and PHEVs will maintain a steady niche. Traditional petrol and diesel models will persist but with dwindling market shares. For manufacturers and dealers, these shifts underscore the importance of expanding electrified line-ups, ramping up charging-infrastructure support, and tailoring offers to evolving customer expectations.
1. UK Market Overview
Registrations of new cars in the UK dipped by 1.9% in Q1 2025 to just under 487,000 units, even as electrified powertrains posted strong gains. In March alone, total UK new-car sales jumped 12.4% year-on-year to 357,103 registrations, buoyed by robust demand for EVs.
2. Battery-Electric Vehicles (BEVs)
Growth and Share
- March Performance: BEV registrations in March 2025 surged by 43.2%, marking the largest month ever for pure-electric cars in the UK.
- Quarterly Share: EVs represented 21% of all new car registrations in Q1 2025, up from around 19.6% for the full year 2024.
- 2025 Forecast: The Society of Motor Manufacturers and Traders (SMMT) projects BEVs will hold 23.7% of UK new-car registrations by year-end 2025.
3. Hybrid Electric Vehicles (HEVs & PHEVs)
Full Hybrids (HEVs)
- March Growth: HEV registrations rose by 27.7% in March 2025, reflecting strong manufacturer incentives and consumer interest in self-charging hybrids.
- 2025 Forecast: SMMT expects full hybrids to account for 14.7% of registrations in 2025, up from roughly 11% in the current parc.
Plug-In Hybrids (PHEVs)
- Q1 Volumes: PHEV registrations increased by 1.1% to 207,048 units in Q1 2025, signalling steady but slower growth compared to BEVs and HEVs.
- Monthly Share: In February 2025, PHEVs made up 8.7% of all new-car registrations, up 1.5 percentage points year-on-year.
- 2025 Forecast: PHEVs are forecast to reach 10.2% market share by the end of 2025.
4. Internal Combustion Engines (ICE)
Petrol
- 2025 Forecast: Petrol-only cars are projected to hold about 46.2% of new registrations, down from over 50% in prior year.
- Decline in Registrations: Petrol registrations fell by 25% in Q1 2025 compared to Q1 2024, as buyers pivot toward electrified options.
Diesel
- Marginalised Fleet: Diesel’s share is set to decline sharply, expected to account for just 5.2% of new-car registrations in 2025, a 17% drop in volumes.
5. Consumer Interest & Projections
Surveys indicate over 50% of prospective buyers intend to choose a hybrid or electric vehicle next, with hybrids viewed as a practical bridge during the rollout of charging infrastructure. Meanwhile, fleet and corporate purchasers are driving much of the plug-in segment’s growth, leveraging tax incentives and Total Cost of Ownership benefits
