UK new car registrations experienced a significant increase in April, rising by nearly a quarter – a 24% jump – to a total of 149,247 vehicles.

Electric Vehicle Sales Drive Growth

This growth was primarily fueled by a substantial 59% increase in electric vehicle (EV) sales compared to the same period last year. The surge in EV demand follows a slowdown in April 2025, triggered by the introduction of vehicle excise duty (VED) on electric models.

Impact of Vehicle Excise Duty

The introduction of VED, commonly known as road tax, and a potential £425 supplement for higher-priced EVs led to increased purchases in March 2025, followed by a dip in registrations after April 1st, 2025.

Varied Performance Across Fuel Types

Beyond EVs, the market showed varied performance. Petrol car demand increased by 8.2%, while diesel registrations saw a minimal decline of 1%, attributed to reduced availability and waning consumer interest.

Plug-in hybrid vehicle (PHEV) sales rose almost 50%, and conventional hybrid (HEV) sales grew by 18.8%. Electrified vehicles – EVs, PHEVs, and HEVs – collectively accounted for over half (53%) of all new car registrations in April.

Concerns Over EV Targets

Despite the positive trend, concerns persist regarding the attainment of government targets for EV adoption. April’s sales represent the highest volume for the month since 2019, indicating a strong recovery for the automotive sector.

SMMT Forecasts

The Society of Motor Manufacturers and Traders (SMMT) has revised its EV sales forecasts downwards, despite the recent growth. While EVs currently hold a 26.2% market share in April and 23.1% across the first four months of the year, this falls short of the 33% target mandated by the Zero Emission Vehicle (ZEV) mandate.

The SMMT believes allowances for increased hybrid sales will likely enable most manufacturers to meet these targets. The April figures also marked a milestone, with the total number of battery electric vehicles registered in Britain surpassing two million.

Rising fuel prices, exacerbated by geopolitical tensions such as the Iran War and disruptions to the Strait of Hormuz, are also contributing to increased interest in EVs. The SMMT has increased its overall market volume forecast to 2.093 million units, a 3.6% rise, but downgraded the projected EV market share to 26.8% from a previous estimate of 28.5%, citing an underperforming first quarter.