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UK Car Market Slumps in April: Tax Changes and Easter Timing to Blame for 10.4% Fall
April 2025 was a tough month for the UK’s car industry as new car registrations dropped 10.4% compared to the same month last year. Just 120,331 new cars were sold, according to the Society of Motor Manufacturers and Traders (SMMT).
At first glance, it looks like a seasonal dip. But scratch beneath the surface, and you’ll find a mix of policy changes, consumer hesitation, and unlucky Easter timing slowing down what should have been a smoother spring for the industry. .png "New car registrations drop in April 2025 in the UK")
What’s Behind the Fall? A Perfect Storm of Factors
Let’s start with the big one, tax. On April 1st, the new Vehicle Excise Duty (VED) changes kicked in. While VED updates aren’t unusual, this year’s change struck a chord by extending the Expensive Car Supplement to more cars, including many electric vehicles.
That spooked buyers. Rather than pay more in April, thousands may have brought their purchases forward into March, artificially inflating last month’s numbers and leaving April in the dust.
“We saw a lot of early activity in March from customers trying to beat the tax rise,” said a Midlands-based dealership director. “April felt more like a hangover than a fresh start.”
But that wasn’t all. This year’s late Easter meant fewer working days in April, giving showrooms and registration departments less time to convert orders into sales. Add economic uncertainty — rising living costs, higher borrowing rates and low consumer confidence — and it’s hard to ignore the downward pressure.
April by the Numbers: A Market Snapshot
Here are the SMMT’s numbers in bite-sized chunks:
Total registrations:
- 120,331 units
- Down 10.4% year-on-year
- 25.3% below April 2019 (pre-pandemic benchmark)
By buyer type:
- Private sales: -7.9%
- Fleet registrations: -11.9%
- Business customers: -10.9% Fleet buyers were the dominant force, accounting for six in every ten new car registrations.
Private buyers are clearly being cautious, but fleets, often seen as a barometer of business confidence, have also pulled back, so it’s not just private buyers who are hesitant.
Fuel Choices: EVs Edge Forward, But It’s Not All Good News
Despite the bad headlines, electrified vehicles are still gaining ground, just not fast enough to meet government targets. 
Battery electric vehicles (BEVs):
- Up 8.1%
- 24,558 registrations
- Now account for 20.4% of the market
Plug-in hybrid electric vehicles (PHEVs):
- Up a whopping 34.1%
And:
Petrol cars:
- Down 22.0%
Diesel:
- Down 26.2%
Hybrid electric vehicles (HEVs):
- Down 2.9%
It’s good to see plug-in models growing, but BEVs aren’t where they need to be. The UK’s Zero Emission Vehicle Mandate requires 22% of all new cars sold in 2025 to be electric. Based on April’s numbers, we’re falling short.
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Dealers Under Pressure, Buyers in Limbo
We’re seeing an electric vehicle market stuck in a strange place.
On the one hand, the range of electric options has never been better. From premium models to more affordable city cars, manufacturers offer choice, performance and range. But the cost to buy — and now to tax — leaves many buyers on the fence.
And then there’s the charging infrastructure. While it’s improving, it still can be patchy in rural areas, and many would-be EV adopters are hesitant to commit without local charging.
What Needs to Happen Now?
If April taught us anything, it would be that market momentum can disappear quickly without the right conditions.
Will the industry call for Consumer incentives to make EVs more affordable (e.g. grants, tax relief, scrappage schemes)?
Further help may include:
- Charging infrastructure investment, especially in rural and suburban areas
- Clear policy direction that doesn’t penalise early adopters or deter interest with complex tax rules
With BEV market share revised down slightly to 23.5% for the year (from earlier forecasts), the UK could miss its emissions targets, not because of the technology, but because of consumer hesitation and confusion.
Final Thoughts: A Warning, Not a Disaster
Don’t overreact to one month’s data. April is always quieter, and the March pull-forward worsened this year’s dip.
But the numbers are real: the car market is facing real challenges, and while electrification is happening, it’s happening in fits and starts.
Manufacturers, retailers, and policymakers need to rebuild trust and momentum. That means making EVs more appealing and accessible, not just for early adopters and company fleets but also for everyday drivers.
Summer’s ahead, and there are several big model launches to come. There’s still time to turn things around. But if trends continue, April 2025 will be more than just a post-Easter slump — the moment the market demands action.
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Source : SMMT April 2025 market insights