The UK car market’s transition towards electrification accelerated in 2025, but rising EV volumes increased pressure on pricing, stock profiles and dealer profitability, according to new data from Brego.
Brego’s 2025 Annual Car Market Insight Report shows electric vehicles accounted for 23.43% of new car registrations last year, up from 19.56% in 2024 but below the Government’s zero emission vehicle (ZEV) target of 28%.
To narrow the gap, original equipment manufacturers (OEMs) relied heavily on discounting and pre-registration, increasing the flow of near-new EVs into the market.
This activity had a direct impact on used EV values.
Average prices for one-year-old EVs fell by 16.6% year on year, while three-year-old EV prices declined by 15.3%.
The report attributes this to cheaper new models and a rise in pre-registered stock entering the used market.
Despite softer pricing, used EVs sold more quickly in 2025. Average days to sell fell by 2.5 days compared with the previous year, suggesting demand kept pace with higher supply.
Increased pre-reg activity
Brego said increased pre-registration activity also placed downward pressure on late-plate pricing across the wider market, adding to margin pressure for dealers already facing higher labour, refurbishment and funding costs.
While consumer demand remained relatively resilient, many retailers faced greater challenges in maintaining profitability, with consolidation and site closures continuing across the sector.
The report also highlights a shift in brand competition.
Chinese manufacturers increased their share of the UK car market to 6.4% in 2025, up from 1.23% a year earlier, supported by competitive EV pricing and an expanding range of models.
Brego expects Chinese brands to become increasingly visible in the used market as volumes cycle through.
Rupert Pontin, head of insight and communications at Brego, said: “The EV transition was the defining force in the UK car market during 2025.
“What the data shows is a market adapting to structural change rather than one under stress.
“EV demand continued to grow, but pricing, pre-registration and cost pressures reshaped how both new and used markets behaved.
“At the same time, the rapid emergence of Chinese brands and the pressure on dealer profitability underline just how much the competitive landscape is changing as we move into 2026.”