UK Automotive Industry Update – October 2025

The UK automotive market continued to show steady momentum in October 2025, with both new and used vehicle sales remaining strong as consumer confidence gradually improves and supply chain pressures ease.

New Car Sales

October saw an estimated 150,000 to 190,000 new car registrations, reflecting stable demand and sustained interest in electrified vehicles. Battery-electric cars (BEVs) have now secured around 20% of the new car market, marking a significant step forward for the country’s transition toward cleaner transport. Hybrid and plug-in hybrid vehicles also continue to grow in popularity, while petrol models remain the largest segment overall. Diesel cars, on the other hand, now represent only a small fraction of sales as buyers increasingly turn away from traditional combustion engines.

Used Car Market

The used-car sector remains the backbone of the UK automotive industry, with transactions estimated at around 300,000 to 400,000 vehicles for October. Despite the rise of electric vehicles, used petrol and diesel cars continue to dominate this space, largely due to affordability and the wider availability of stock. However, the growing number of used hybrid and electric vehicles entering the market is offering buyers more sustainable options than ever before.

Powertrain Breakdown

• The UK’s automotive landscape continues to evolve, with a clear shift in consumer preference toward greener technology:
  
• Petrol: Still the leading fuel type but gradually declining in market share.
  
• Diesel: Now accounts for less than 10% of new car registrations.
  
• Hybrid & Plug-in Hybrid: Rapidly gaining traction as a practical bridge between petrol and electric.
  
• Electric (BEV): Around one in five new cars sold is now fully electric.
  

Market Overview

Overall, 2025 has been a year of steady growth and transformation for the UK automotive industry. New-car sales are rebounding after several years of disruption, while the used-car market continues to thrive thanks to high demand and improved stock levels. The ongoing rise of electric and hybrid vehicles highlights a strong consumer shift toward sustainability, supported by government incentives and expanding charging infrastructure.

As the year draws to a close, the market remains optimistic -balancing innovation, cleaner technology, and affordability as key priorities for UK motorists.