New cars demand fell by 2.5% in January

The industry body the Society of Motor Manufacturers and Traders (SMMT) has said that registration of new cars fell by 2.5% in January.

The SMMT said that 139,345 new cars were registered last month and in January 2024 there was 142,876 cars registered.

There was a fall in petrol cars by 15.3% and for pure battery electric cars there was a 41.6% spike in sales.

SMMT chief executive Mike Hawes said, “January’s figures show EV demand is growing, but not fast enough to deliver on current ambitions.

“Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.

“The application, therefore, of the expensive car supplement to VED (vehicle excise duty) on electric vehicles is the wrong measure at the wrong time.

“Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet Government, industry and societal climate change goals.”

Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said: “January marked a lacklustre start to 2025 for the new car market, as registrations fell for the fourth month in a row.

“This year will offer its fair share of challenges for established brands, amid economic uncertainty, tariff threats from the US and fierce competition from a growing array of new Chinese entrants.