The reasons why new car sales across UK dropped

New car registrations experienced a significant drop last month, according to industry figures.

Preliminary data released by the Society of Motor Manufacturers and Traders (SMMT) reveals a 10.4 per cent year-on-year decline in new car registrations for April.

Only 120,331 new cars were registered in the UK, compared to 134,274 in April of the previous year.

The SMMT points to several factors contributing to this downturn, most notably changes to Vehicle Excise Duty (VED) rules.

The removal of the VED exemption for electric vehicles, effective from April 1, prompted a surge in pre-deadline purchases. Many buyers, described by the SMMT as "shrewd", brought forward their electric vehicle purchases to avoid the new tax.

The timing of Easter also played a role. With the holiday falling later in April this year, fewer working days were available for car sales compared to the same period in 2024. This further compounded the decline in new car registrations.

Uptake of pure battery electric new cars grew by 8.1 per cent in April, reaching a market share of 20.4 per cent, up from 16.9 per cent a year earlier.

Under the zero emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission, which generally means pure electric.

SMMT chief executive Mike Hawes described the overall performance of the new car market in April as “disappointing but expected” after the 12.4 per cent year-on-year growth in March when new registration plates were released.

He said: “Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition.

“Recent Government adjustments to flexibilities and compliance within the Zev mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers.

“However, EV uptake is still being heavily and unsustainably subsidised by the industry, which is why a compelling package of measures from Government is essential if consumers are going to make the switch.”

Ian Plummer, commercial director of online vehicle marketplace Auto Trader, said “short-term turbulence” is most likely to blame for April’s softening new car sales.

He added: “We’re seeing new car visits on Auto Trader up 8 per cent on 2024 and we’re confident this will convert to sales in the coming months.”

Dan Caesar, chief executive of lobby group Electric Vehicles UK, said: “Month after month at least one in five new car buyers are now going battery electric.

“As the industry demonstrates that battery electric vehicles are the cheaper and better option, more and more end-users will opt for all-electric vehicles.”