Quick Takeaways
  • UK car registrations crossed the two-million mark for the first time since the pandemic, signalling a structural recovery in demand.
  • Rapid electrification, led by BEVs and PHEVs, is reshaping both brand performance and the UK powertrain mix.
UK passenger car sales 2025 SMMT data confirmed a positive close for the automotive market, reflecting cautious recovery despite economic and geopolitical pressures. New passenger car registrations in the UK increased steadily, supported by growing electric vehicle demand and improved fleet activity, helping the market cross a key post-pandemic milestone.
UK new car registrations rose by 3.9 percent in December to 146,249 units, while full-year volumes grew 3.5 percent to 2,020,520 units. This marked the first time annual registrations exceeded two million since the pandemic, signaling renewed momentum across the passenger vehicle market.
Brand Performance Shapes UK Passenger Car Sales 2025 SMMT Trends
Several major manufacturers posted mixed results during the year, reflecting shifting consumer preferences and competitive pressure.
  • Volkswagen recorded growth of 7.4 percent, reaching 178,607 units and strengthening its market share to 8.8 percent
  • Ford registrations increased 8.2 percent to 118,998 units
  • Kia delivered marginal growth of 1.1 percent with 113,436 units
  • BMW volumes declined by 2.0 percent to 122,723 units
  • Audi sales fell sharply by 9.2 percent to 111,115 units
These movements underline how model mix, electrification strategies, and pricing continue to influence brand performance in the UK car market.
Top-Selling Models Highlight Consumer Preferences
Demand remained strong for compact SUVs and hatchbacks, reinforcing ongoing shifts in buyer priorities.
The five best-selling cars in 2025 were:
  • Ford Puma – 55,488 units
  • Kia Sportage – 47,788 units
  • Nissan Qashqai – 41,141 units
  • Vauxhall Corsa – 35,947 units
  • Nissan Juke – 34,454 units
This lineup reflects sustained interest in practical, fuel-efficient vehicles suited for both urban and suburban use.
Powertrain Shift Accelerates Market Transformation
The 2025 results highlighted a decisive change in the UK powertrain mix. Petrol and diesel vehicles continued to lose share, while electrified options expanded rapidly.
  • Petrol car sales declined 8.0 percent to 937,938 units
  • Diesel volumes fell 15.6 percent to 103,906 units
  • Battery electric vehicle registrations surged 23.9 percent to 473,348 units
  • Plug-in hybrid sales climbed 34.7 percent to 225,143 units
  • Hybrid electric vehicles increased 7.2 percent to 280,185 units
Electrified vehicles together represented more than 40 percent of all new car registrations, underscoring the accelerating transition toward low-emission mobility.
Fleet Demand Remains the Backbone of the Market
Fleet and business channels continued to dominate total registrations, reinforcing their role in supporting overall market stability.
Private sales rose 4.5 percent to 779,587 units, while fleet registrations grew 2.6 percent to 1,194,545 units. Business sales posted the strongest percentage increase, rising 8.8 percent to 46,388 units, although they remained a smaller share of the total market.
Industry leaders welcomed the milestone but cautioned that policy clarity remains critical. While electric vehicle adoption is increasing, concerns persist around affordability, charging costs, and mixed regulatory signals. Continued government action and long-term certainty are seen as essential to sustain investment and maintain the UK’s global automotive competitiveness.
Industry reports & Public disclosures | GAI Analysis

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