The UK new car market saw a 1% year-on-year fall in February due to a fall in fleet registrations, despite a big increase in demand for EVs.

According to the Society of Motor Manufacturers and Traders (SMMT) fleet registrations were down by 4% last month, while private registrations were up by 4.6%, and business registrations – classed as those to organisations with fewer than 25 vehicles – up by 3.3%.

This means both months of 2025 so far have seen a reversal of the general trend from last year, when strong fleet demand made up for lagging retail sales.

In terms of fuel mix, pure EV registrations were up by 41.7% year-on-year in February, with their share of the overall market rising from 17.7% to 25.3%.

Plug-in hybrids were up by 19.3% for an 8.7% market share, while conventional hybrids were up by 7.9% for a 13.6% market share.

Petrol car registrations were down by 17.3%, accounting for 47.4% of the market, while diesel car registrations were down by 15.1% for a 5% market share.

The SMMT attributed the strong demand for EVs in February to buyers wanting to get ahead of tax changes scheduled for April, which will see EVs subject to VED for the first time, and many also subject to the expensive car supplement. It also noted that the EV market share in February was still behind the 28% level required by the UK Government’s ZEV mandate.

SMMT chief executive Mike Hawes said: “Although February’s figures show a subdued overall market, the good news is that electric car uptake is increasing, albeit at huge cost to manufacturers in terms of market support. 

“It is always dangerous, however, to draw conclusions from a single month, especially one as small and volatile as February. 

“With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month – but, long term, EV consumers need carrots, not ever more sticks.”

Reacting to the figures, leasing company Novuna Vehicle Solutions’ managing director Jon Lawes said: “A rise in EV registrations suggests growing consumer interest, but the broader outlook remains uncertain.

“From April, EVs will lose their exemption from VED, adding costs that could erode the tax advantages driving corporate adoption—particularly via salary sacrifice schemes.

“With the 2030 ban on new petrol and diesel cars looming, concerns are mounting over future tax rises, complicating long-term fleet planning. Manufacturers, reliant on incentives to meet ZEV mandate targets, now face an unpredictable landscape. 

“Combined with geopolitical instability, this could strain supply chains and push prices higher, dampening momentum just as the sector needs acceleration.”

Telematics company Geotab’s EMEA VP Aaron Jarvis said: “EV sales are growing, and give credit where it’s due – more have been registered this year than in all of 2019. But let’s not sugarcoat it: the EV transition is hitting harder than expected and we’re set to miss 2025 ZEV mandate targets at this rate. 

“Add trade uncertainty and manufacturing struggles, and carmakers are in a tough spot. They need real support. We look forward to seeing the UK Government’s plan following the ZEV mandate consultation, because time is running out.”