More than two million new cars were registered in the UK in 2025 for the first time since 2019, and Volkswagen has retained its place as the most in-demand brand, getting almost 180,000 new VWs onto the roads.
Volkswagen actually increased its market share by 0.3ppts to take a 8.84% slice of the total new car market, ahead of BMW’s 6.07%, Ford’s 5.89%, Kia’s 5.61% and Audi’s 5.5%.
Among the brands losing significant market share were Mercedes-Benz, Fiat, Seat and Citroen.
The year-end result came with a strong December market, which was 3.9% up on December 2024, fuelled by sales growth from Chinese brands Jaecoo, BYD, Omoda, Polestar and MG.
The Society of Motor Manufacturers and Traders said it noted a repeat of a pattern seen in previous years that battery electric vehicle (BEV) registrations took a high market share in the final month of the year, accounting for 32.2% of the market – the only time the ZEV mandate target of 28% was exceeded in 2025.
Rod McLeod, director of Volkswagen UK, said: “The news that Volkswagen is once again the top-selling new-car brand in the UK is the perfect start to what will undoubtedly be a really exciting year for the brand. The results announced by the SMMT – which show a healthy gap between us and the number-two brand in the market – underline the enduring popularity and quality of Volkswagen cars, as well as the outstanding customer service provided by our fantastic network of Volkswagen retailers.
“The trends we are seeing with our electric ID. range are really pleasing, and I can’t wait to see and drive the new models coming to market in 2026.” New T-Roc and ID Polo are among the 2026 launch plan.
The Golf was Volkswagen UK’s best-selling model with 32,478 registrations, and Tiguan achieved 29,857 registrations. Volkswagen’s electric models, the ID3, ID4, ID5, ID7 and ID7 Tourer, contributed more than 30,000 units to the brand’s overall total in 2025, a 45% uplift year-on-year.
In the whole of 2025 almost half a million (473,348) new BEVs were registered. The SMMT said this is likely to place the UK as the second biggest EV market in Europe by volume, and is a great achievement for the UK. However it noted that the BEV market share of 23.4% still falls short of the ZEV Mandate target of 28% and warned: “The gap between demand and ambition is increasing rather than diminishing.”
SMMT chief executive Mike Hawes added: “The new car market finally reaching two million registrations for the first time this decade is a reasonably solid result amid tough economic and geopolitical headwinds. Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high.”
He wants ministers to reconsider the targets they set for the industry to push EVs into the market.
“Government has stepped in with the Electric Car Grant, but a new EV tax, additional charges for EV drivers in London and costly public charging send mixed signals. Given developments abroad, government should bring forward its review and act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition.”
Manufacturer investment now provides UK motorists with a choice of more than 160 pure electric cars – up from just over 130 at the start of 2025 – and at least 60 more are due in 2026 from existing brands plus more new entrants such as AION.
The SMMT noted that average new car CO2 has fallen by 10.1% from 2024 to 91.8 g/km.
At the National Franchised Dealers Association its chief executive Sue Robinson said: “While it is encouraging to see an improvement in December and steady growth over the year, the pace and cost of the transition continue to present challenges for retailers operating in a difficult economic environment.
“As we move into 2026, it will be vital that policy and fiscal measures provide stability and confidence for both consumers and the automotive retail sector to sustain investment and demand.”
Like the SMMT, the NFDA has called for changes to the ZEV Mandate to better reflect the pace of UK consumer demand for EVs.
It has written to transport secretary Heidi Alexander and roads minister Simon Lightwood urging the Government to review the UK’s ZEV mandate targets in light of the EU’s shift.
In its letter, the NFDA argued that UK policy needs to remain aligned with changing international benchmarks to protect competitiveness, provide market certainty and support realistic transition pathways for retailers and consumers.
DATA: new car registration information