UK new car registrations fell by 5% year-on-year in July, according to data from the Society of Motor Manufacturers and Traders (SMMT).

The organisation said that the total of 140,154 registrations represented the weakest July for the market since 2022.

Fleet registrations saw a particular decline during the month, down by 6.5%, while private registrations fell by 3.2%. Business registrations – classed as those to firms with fewer than 25 vehicles – were up by 10.4%, though this still only accounted for 2.1% of the overall market.

In terms of fuel mix, pure EV registrations were up by 9.1% – though the SMMT noted this was well down on the average 34.6% EV growth seen during the first half of 2025, and said some prospective buyers were holding back to wait for details of the UK Government’s new Electric Car Grant.

Plug-in hybrid registrations were up by 33% year-on-year in July, in contrast to conventional hybrids, which were down by 10%.

Petrol car registrations were down by 14.7% year-on-year, while diesels were down by 7.9%. 

SMMT chief executive Mike Hawes 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.” 

GlobalData expects the UK car market to register around 1.96m units in 2025.

GlobalData says the forecast is subject to risks.

GlobalData analyst Jonathon Poskitt says the UK car market outlook remains challenging due to several headwinds. “The mood is somewhat cautious on the outlook,” he says. “There is a tightening of fiscal policy in prospect as well as the lagged effects of previous interest rate hikes, and the adverse impact of recent US tariffs – albeit mitigated by the US-UK trade deal.”