UK new car registrations fell by 2% year-on-year in August, with declining demand from fleets the main factor.

According to the Society of Motor Manufacturers and Traders (SMMT), fleet registrations fell by 4.6% year-on-year last month – although the sector still maintained a 59.1% share of the overall market.

Private registrations were up by 0.7%, while business registrations – classed as those to fleets with fewer than 25 vehicles – were up by 41.6%, although this still only accounted for a 1.9% market share.

In terms of fuel mix, EV registrations were up by 14.9% year-on-year – enough to give EVs a 26.5% market share, the highest seen so far in 2025 and the fourth-highest on record. The SMMT attributed the EV growth to “limited initial impact” from the UK Government’s new Electric Car Grant, alongside improved model choice and manufacturer discounting. It also noted that private buyers waiting for the September number plate change had historically seen the EV market share rise in August.

Plug-in hybrid registrations saw the strongest growth in August, up by 69.4% year-on-year for an 11.8% market share, while conventional hybrids were down by 13.9% for an 11.4% share.

Petrol car registrations were down by 14.2%, for a 45.1% market share, while diesels were down by 16.6% to take 5.2% of the market.

SMMT chief executive Mike Hawes said: “August was the best month yet this year for EV market share and, while it is often volatile due to low overall volumes, the overall trend is positive. September will be critical, with the new number plate factor typically driving around one in seven new car registrations for the year. 

“There is now a vast choice of electric models across all segments and many consumers will also, for the first time in three years, benefit from a grant to help them switch to electric. 

“With more models being added to the Government’s Electric Car Grant each week, there is now every reason for drivers to make the switch, helping deliver both economic growth and decarbonisation.”

Giving his reaction to the figures, Lex Autolease managing director Nick Williams said: “Interest in EVs is accelerating, and we’re seeing more drivers turn to used EVs as a cheaper way to switch to electric.

“Since the government announced its new Electric Car Grant, we’ve seen a jump in EV enquiries, showing growing interest across the board. 

“To keep the momentum going, we need continued collaboration between government, dealers and leasing providers to support all parts of the EV market.”

Taking a less positive view of the market, Novuna Vehicle Solutions managing director Jon Lawes said: “While today’s figures show some positive momentum, the reality is we are still woefully behind ZEV mandate targets, and the mishandled Electric Car Grant is creating more confusion than confidence among motorists. 

“With only two models qualifying for the full £3,750 discount and muddying last-minute rule changes, the botched scheme rollout risks stalling EV sales when affordability and choice matter most. 

 “Urgent action is needed: clear criteria, broader eligibility, and support for used EVs. Without this, the UK’s EV transition could remain stuck in the slow lane.”