UK Car Market Poised for Record 2 Million Sales in 2025

Cox Automotive has shared an interesting prediction: by 2025, the UK might witness around two million new car sales. This would mark a 3.6% rise compared to 2024, but the numbers still fall short—11.6% lower than the annual average seen between 2001 and 2019. The main culprits? Persistent supply chain hiccups and local economic strains.

Cox Automotive, through their latest Insight Quarterly (IQ) report, hints at a shift in car availability. The move to NEVs (new energy vehicles) could mean fewer brands and models to choose from. Imagine walking into a dealership with fewer options; that’s where we might be headed.

Philip Nothard, who’s an Insight director at Cox Automotive, brought up a valid concern. While global car production remains high, there's a growing disconnect between those production levels and the UK's zero-emission vehicle (ZEV) goals. In simpler terms, manufacturers don’t seem entirely aligned with the UK’s green targets. They’re being pushed hard to ramp up EV (electric vehicle) sales, but it’s a tricky balancing act. How do they stop making petrol and diesel cars fast enough without creating chaos?

Interestingly, manufacturers are rethinking how they sell cars. Many are hitting the brakes on fully adopting the agency sales model. What used to be a system where cars were pushed onto buyers now seems to be flipping—sales are becoming more “pull” driven. For consumers, that could mean cars aren’t as easy to find.

Inflation and high interest rates are still squeezing people’s budgets, but consumer confidence? That’s apparently set for a slow recovery.

As for the types of cars people might buy: by 2027, diesel and mild hybrids will shrink to just 3% of the market, while battery-electric vehicles could surge to 34%. Petrol? Down from 51% to 35%. A major shift, for sure. The future’s electric.

Secondhand cars are going to stay and for good reasons. They are cheap and they sell crazily fast. Check out the fastest selling cars of this year.

Source and Image: AutoCar UK