New car sales fell five per cent in July to 140,154 units, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
Demand from private and fleet buyers fell 3.2% and 6.5% to 51,646 and 85,594 units respectively, while registrations in the business sector climbed 10.4% to 2,914 units.
Despite an overall downward trend, registrations of PHEVs rose 33% and pure EVs were up 9.1%.
However, hybrid transactions dropped by 10% to 18,551 units while combined petrol and diesel deliveries fell 14.0% to 74,289 units, but still accounted for more than half (53%) of July’s market.
Year-to-date, the overall market remains up 2.4% at 1.18 million units, including more than a quarter of a million EVs, and July’s decline is expected to be temporary, with the latest market outlook revised up to 1.9 million units for 2025, with EV volumes revised up to take a 23.8% share.
Positive signs
Mike Hawes, SMMT chief executive, said: “July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty. Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.
“That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.
