UK NEW CAR SALES TOP 2 MLN IN 2025 AS DEMAND FOR ELECTRIC VEHICLES RISES

LONDON, Jan 6 (Bernama-Xinhua) -- New car sales in Britain exceeded 2 million units in 2025 for the first time since the pandemic, driven largely by rising demand for electric vehicles (EVs) and the growing presence of Chinese car brands, Xinhua reported, quoting industry data on Tuesday.

A total of 2.02 million new cars were registered in Britain last year, up 3.5 per cent from 2024, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). While still below the pre-pandemic level of 2.31 million recorded in 2019, the result marked a return to the industry's long-term annual average.

EVs accounted for around 23 per cent of total registrations in 2025, with fully electric car sales rising by nearly a quarter year on year to a record level.

Chinese brands continued to gain wider acceptance among British consumers, with registrations of electric and hybrid models from manufacturers such as BYD, MG and Chery rising steadily. Preliminary figures showed that Chinese manufacturers accounted for nearly 10 per cent of new car registrations in 2025, almost double their share a year earlier.

The SMMT said the increase reflected wider consumer adoption of battery electric and plug-in hybrid models, although overall progress toward electrification remained uneven.

SMMT Chief Executive Mike Hawes said the recovery was "not yet complete," and warned that growth had been heavily concentrated in specific market segments. He noted that EV demand was supported by extensive manufacturer incentives, describing the current pace of sales growth as "fragile."

The SMMT said manufacturers offered discounts worth an estimated £5.5 billion (about US$7.45 billion) last year to stimulate EV demand and comply with the government's zero-emission vehicle mandate. Under the scheme, automakers are required to meet rising annual targets for zero-emission vehicle sales or face financial penalties.

Despite a stronger December performance, EV sales fell short of the government's full-year target, prompting the SMMT to call for an earlier review of the mandate to provide greater policy certainty for both industry and consumers.

The industry body added that wider economic pressures, supply chain disruptions and rising costs continued to pose challenges for the British automotive sector, even as overall sales showed signs of stabilisation.

--BERNAMA-XINHUA