THE UK's new car market fell 10.4 per cent in April, with 120,331 units registered, according to the latest data published today by the Society of Motor Manufacturers and Traders.

It was the sixth fall in the last seven months, reflecting a fragile economic backdrop and weakened consumer confidence, with 13,943 fewer cars registered in the month compared with the year before and 25.3 per cent behind pre-pandemic April 2019.

In what is traditionally a quieter month following the March plate change, volumes were also impacted by the late timing of Easter, resulting in fewer working days.

In addition, the implementation of VED changes affecting all new cars, including the Expensive Car Supplement which became applicable to many new EVs from April 1, pushed transactions into March as shrewd buyers got ahead of the tax increases.

Registrations fell across all sales types, with private, fleet and business demand down 7.9 per cent, 11.9 per cent and 10.9 per cent respectively.

Continuing market trends, fleet buyers drove activity, responsible for six in 10 registrations. In terms of powertrain performance, demand for hybrid electric vehicles (HEVs) fell 2.9 per cent, with petrol and diesel registrations down 22.0 per cent and 26.2 per cent respectively.

Conversely, registrations of vehicles with a plug rose: plug-in hybrids (PHEV) up 34.1 per cent and battery electric vehicles (BEV) increasing 8.1 per cent to 24,558 units, taking more than a fifth (20.4 per cent) of the market.

There is now a huge range of BEVs on the market, with more than 130 models available - including an increasing number at lower price points - the result of massive investment by manufacturers to offer electric options for all consumers across all segments.

Year-to-date the new car market is up 3.1 per cent and, with new BEV registrations up 35.2 per cent to push market share to 20.7 per cent, these models are now the second most popular powertrain after petrol but still below the 28 per cent required under market regulations.

While the government's recently proposed amendments to the Zero Emission Vehicle Mandate requirements are welcome - recognising the intense pressure on the sector - the targets remain incredibly challenging and more must be done to stimulate demand.

The importance of government incentives to boost volumes remains paramount. Halving VAT on new EV purchases; scrapping, or amending, the VED Expensive Car Supplement; and equalising VAT paid on public charging to that levied at home would all help boost the market and send a strong signal to any hesitant buyers that now is the time to go electric.

Mike Hawes, SMMT chief executive, said: "April's performance is disappointing but expected after March's surge. 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."

The news comes as the latest market outlook revises up full year 2025 new car registrations to 1.964 million units but keeps 2026 expectations below the two million mark for what would be the seventh successive year.

Market share expectations for new BEV registrations, meanwhile, remain fairly constant with only a marginal revision downward from the January view, by 0.2 percentage points to 23.5 per cent for this year, and by 0.3 percentage points to 28 per cent next year, compared with the ZEV Mandate targets of 28 per cent and 33 per cent respectively.