New car market fell 1% in February
Registrations of new cars fell by 1.0% last month, figures show.
Industry body the Society of Motor Manufacturers and Traders (SMMT) said 84,054 new cars were registered in the UK in February.
That compares with 84,886 during the same month last year.
The fall was driven by a 17.3% drop in deliveries of petrol cars.
There was a 41.7% increase in the uptake of pure battery electric cars, resulting in a market share of 25.3%.
The SMMT said the growth in demand for EVs was “unsurprising” because tax changes in April mean many models will be subject to the vehicle excise duty expensive car supplement for the first time.
Over six years this will add £2,215 to the cost of owning a pure battery electric new car with a list price exceeding £40,000, according to the organisation.
The SMMT said manufacturers have discounted EVs by a total of £4.5 billion over the last year, amid pressure to hit Government-mandated sales targets.
February is one of the smallest and most volatile months for new car sales, because it comes ahead of the March number plate change.
Private registrations in February rose by 4.6% year on year, while purchases for fleets owned or leased by businesses or other organisations dropped by 4.0%.
SMMT chief executive Mike Hawes said: “Although February’s figures show a subdued overall market, the good news is that electric car uptake is increasing, albeit at huge cost to manufacturers in terms of market support.
“It is always dangerous, however, to draw conclusions from a single month, especially one as small and volatile as February.
“With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month.
“But, long term, EV consumers need carrots, not ever more sticks.”
Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “February was a strong month for new private car sales compared to 2024 – a positive sign of rising consumer demand as we enter the key plate change month of March, despite the slight drop in the new car market overall.
“The jump in electric sales is also encouraging, but we’re still well behind the growth we need to see at this stage in the transition and hit the Government’s 28% target on EV sales.
“The industry is working hard to bridge the price gap between new EVs and traditional cars, but when new electric cars are 24% dearer it is still a challenge for many buyers.
“We need more support to boost demand.”
James Court, public policy director for EV leasing company Octopus EV, said: “It’s no surprise that we’ve seen another bumper month for EVs.
“The UK must double down now and stick with coherent, consistent policy that positions us as a world leader for cleaner, more affordable driving.”
A Government consultation on the phasing out of new petrol and diesel cars and vans from 2030 closed on February 18.
Labour has committed to reverse then-prime minister Rishi Sunak’s decision in September 2023 to delay prohibiting the sale of conventionally fuelled new cars and vans from 2030 until 2035.
