Deloitte comments on SMMT car reg figures for April 2025

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said:

“On the back of March’s bumper month for new car sales, April was always set to be a low volume month. That being said, it is disappointing to see sales stall at a time when the industry is on the lookout for signs of positivity in the market.

“Although sales of battery electric vehicles continue to grow across the sector, it is clear that consumer perception on EVs still needs to shift. With ongoing concerns over price and charging infrastructure still commonplace, more needs to be done to support private buyers thinking about switching to electric.

“The news shared at the beginning of April that the government is amending their Zero Emission Vehicle mandate to provide manufacturers with more flexibility during the transition away from petrol and diesel vehicles is a clear sign that the concerns of the industry are being listened to. To compound the slower market in April, the UK automotive industry is also having to navigate the changing global tariff environment.

“As tariffs on cars being sold to the US are implemented, the consensus view from industry analysts is that demand for new cars in the US is set to fall this year. This is likely to have a material impact on UK car production, with the US a key market for UK automotive companies. On top of this, Deloitte’s recent Q1 CFO survey highlighted that businesses were becoming more defensive, with a greater focus on cost control in light of geopolitics being rated as the top risk to businesses. With fleet sales continuing to drive growth in the sector, any pull back on investment could slow down the ability of fleet managers to replenish their stock of vehicles.

“From a private buyer’s perspective, there will be concerns that a flattening of consumer confidence could mean some consumers think twice before making a large purchase. However, there are positive signs in the UK economy, including real wage growth, which may prove encouraging for consumers considering car purchases.”

ENDS