The UK’s car market staged a sharp recovery in April, with registrations surging by nearly a quarter as buyers returned after a tax-driven slump the previous month.
Some 149,247 new cars were registered, according to the Society of Motor Manufacturers and Traders (SMMT), a 24pc rise compared with the same month last year. The jump marks a “rebound” following a distorted March, when consumers rushed to beat changes to vehicle taxation.
Last year’s April figures were unusually weak after buyers accelerated purchases to avoid the expansion of Vehicle Excise Duty (VED), which for the first time brought many electric vehicles into scope of higher charges. From April 1, EVs priced above £40,000 became liable for the so-called luxury car supplement, adding £425 a year to the standard rate.
The result was a sharp dip followed by an equally pronounced recovery — a pattern that underscores how fiscal policy continues to shape demand in the automotive sector.
Growth in April was broad-based, though led by fleets, where registrations climbed 26.8pc as businesses renewed vehicles and capitalised on improving supply. Private buyers also returned to showrooms, with retail registrations up 20.2pc, while smaller businesses posted a more modest 15pc increase.
Electric vehicles were again the standout performers. Pure battery-electric cars accounted for 26.2pc of all new registrations, up from 20.4pc a year earlier, with volumes rising by almost 60pc. The milestone reflects both improving consumer acceptance and intensifying pressure on manufacturers to meet government targets.
Under the UK’s zero-emission vehicle mandate, carmakers must ensure that 33pc of new car sales this year are zero-emission — a threshold that effectively compels a rapid shift towards battery power. While flexibilities such as plug-in hybrid sales offer some leeway, the trajectory remains clear.
The SMMT said the UK reached a symbolic milestone in April, with the registration of the two millionth battery-electric car, highlighting the pace of the transition despite lingering concerns over affordability and charging infrastructure.
Mike Hawes, SMMT chief executive, said: “April’s rebound is welcome, but underlines just how significantly fiscal changes can influence the market.
“Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate.
“The mounting cost of compliance threatens to limit consumer choice, overall decarbonisation and the sector’s competitiveness so the need for a rapid review of the transition to align policy with market realities is unchanged, else Britain’s attractiveness as a vehicle market and manufacturing hub will be put at risk.”
Yet the latest figures also expose the fragility beneath the headline growth. Analysts caution that April’s surge is as much a statistical correction as a sign of underlying strength, with demand still sensitive to policy shifts and cost pressures.
Ian Plummer, chief customer officer at online vehicle marketplace Autotrader, said: “Despite a backdrop of geopolitical instability, UK car-buying positivity continued apace in April with the UK’s new car market seeing a massive year-on-year increase and an April monthly performance that is the nearest we’ve been to pre-pandemic highs.
“While this year-on-year growth is in part driven by comparison with last year’s changes to VED rates and the expensive car supplement, it looks increasingly as if the higher levels of competition from new brands entering the market, a continued surge of exciting new launches as well as enhanced consumer offers are driving car buyers back into showrooms in ever bigger numbers.”
For ministers, the rebound offers reassurance that the market can absorb tax changes without lasting damage. For the industry, however, it is a reminder that confidence remains finely balanced — and that the road to electrification will be shaped as much by the Treasury as by consumer choice.
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