Deloitte comments on SMMT car reg figures for July 2025

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

"The decline in new car registrations in July is somewhat disappointing given the positive numbers we’ve seen in the last couple of months. According to the latest Deloitte Consumer Tracker the number of people planning to buy a new car has dipped slightly from the last quarter - 7.1% in Q1 to 6.7% Q2 - mirroring a broader fall in consumer confidence. This suggests the second half of the year may not see the growth seen so far this year. 

“While Battery Electric Vehicle sales continue to grow, this growth may be insufficient to offset the overall decline, highlighting the need for a clear and more wide-ranging strategy to stimulate the market. The new electric car grant is a welcome incentive but more clarity around eligibility will be required for this to have its intended impact.

“Finding places to charge is still stopping many people from buying electric cars, particularly those without off-street parking. Right now, EVs are still a lot easier and cheaper to run if consumers have direct access to a driveway, so there is a need to level the playing field and make electric driving accessible for everyone. We’re beginning to see signs of a two-tiered market which risks leaving a significant portion of the population behind in the transition to EVs.

“The recent 12% decline in UK vehicle manufacturing highlights the urgent need for a robust and supportive industrial policy to safeguard the future of the automotive industry. The government’s launch of the DRIVE35 programme to kickstart auto investment and jobs is a good start, but more continued support is required to secure the UK’s electric future.”

ENDS