UK new car sales fell in November due to consumer confidence challenges and pre-Budget uncertainty – EY comments

Maria Bengtsson, EY UK & Ireland Mobility Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for November 2025:

“After two consecutive months of growth in September and October, UK new car registrations fell year-on-year in November to 151,154 units, down 1.6% from 153,610 units in the same month last year. The modest decline in sales is relatively unsurprising given uncertainty around the Autumn Budget is likely to have prompted some businesses and consumers to delay purchase decisions.

“Battery Electric Vehicle (BEV) registrations continued their growth last month despite the dip in overall new car sales, with a 3.6% year-on-year rise. Whilst this was a much less significant uptick than the 23.6% increase seen last month, BEVs accounted for 26.4% of market share in November, up from 25.4% in October. However, this remains below the 28% Zero Emissions Vehicles (ZEV) Mandate target, which continues to be a key regulatory challenge for automakers – not least given the introduction of the new mileage-based tax for EVs, which could reduce demand.

“With that said, the Chancellor’s announcement of an increase in the expensive car supplement threshold for EVs from £40,000 to £50,000, and an extension of the Electric Car Grant to more models over a longer time period, combined with additional investment in EV charging infrastructure, should help to limit any reduction in EV demand prompted by the introduction of the new mileage tax. 

“Plug-in Hybrid Electric Vehicle (PHEV) and Hybrid sales both saw growth in November, with 14.8% and 1.3% year-on-year upticks respectively.”

Retail sales fell in November while fleet saw narrow uptick

Maria added: “In contrast to consistent recent growth, retail sales fell back in November, with a 5.5% year-on-year decline. This likely reflects relatively downbeat consumer sentiment and heightened uncertainty in the lead up to the Autumn Budget, which may have delayed some purchase decisions. Meanwhile, fleet sales saw a marginal 0.2% year-on-year rise despite the fall in overall new car registrations.”