UK new car registrations declined by 2% in August 2025, totalling 82,908 units, according to the Society of Motor Manufacturers and Traders (SMMT).

The industry body said this period typically sees reduced activity, accounting for less than 5% of annual deliveries ahead of September’s number plate change.

Despite the downturn, battery electric vehicles (BEVs) achieved a record market share of 26.5%.

Fleet uptake was predominant, constituting 59.1% of all new vehicles, despite a 4.6% reduction in volumes.

Private buyer uptake saw a marginal increase of 0.7%, and the business sector rose by 41.6%, although this resulted in under 500 additional units.

The zero-emission transition, driven by manufacturer investments, discounting, and government incentives, led to a 14.9% increase in BEV registrations.

It aligns with trends from 2023 and 2024, where August’s low registration volumes and high fleet concentration boosted BEV shares.

Plug-in hybrid vehicle (PHEV) uptake outpaced BEV growth, rising by 69.4% to an 11.8% market share.

However, hybrid electric vehicle (HEV) uptake decreased by 13.9%, accounting for 11.4% of the market.

In the first eight months of 2023, the new car market rose by 2.1% to 1.26 million, reaching a five-year peak but remaining 16.7% below pre-pandemic levels.

BEVs comprised 21.9% of the market, still below the 2025 target of 28% for zero-emission vehicles.

With the target approaching and September, the second busiest month of the year, underway, accelerating EV uptake remains crucial, the SMMT said.

Approximately a quarter of BEV models now qualify for the Electric Car Grant, potentially boosting demand.

The trade body expects the industry efforts to enhance affordable and reliable charging solutions to increase the year-to-date market share of EVs as they strive to meet government targets.

SMMT chief executive Mike Hawes said: “August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year.

“There is now a vast choice of electric models across all segments, and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. With more models being added to the government’s Electric Car grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”