Understanding key car statistics and trends for 2025 can help you achieve a more fulfilling driving experience. Those having difficulty choosing between a new or used vehicle can benefit from learning about average prices for each class, while drivers considering an electric car can more easily shop with knowledge of the market’s growth rate.
The UK’s automotive economy remains large, with its new vehicle market being the seventh largest globally at 1.953 million new cars sold in 2024. Used vehicle sales increased 3% year-over-year in 2024, with 7.46 million cars sold compared to 2023’s 7.24 million. While one Tesla made the list of the top-ten-selling SUVs, the electric car market’s development faces challenges that we’ll explore.
Keep reading to learn how 2025 car statistics and trends can shape your next vehicle purchase in more ways than one.
New cars sales: trends and forecasts
Experts expect new car prices to maintain or grow beyond their 2024 average costs due to factors like the decreasing supply of petrol and diesel cars in favor of EV development. In 2024, the median price for a new car in the UK hit £42,340, representing a significant increase over previous years.
However, new car registrations are anticipated to grow by 2% in 2025 to 1.98 million. This increase would mark the fifth consecutive year of growth after the COVID-19 pandemic decreased new vehicle registrations because of global supply chain and demand disruptions.
A different forecast predicts the UK market will hit 2.04 million car sales in 2025—a 3.6% increase over 2024 but 11.6% less than the 2000-2019 average.
The emergence of new luxury car sales
One of the UK auto market’s most prevalent trends is its 24% demand increase for luxury vehicles in the past year despite factors like the cost of living crisis. While this trend seems to be a paradox, some apparent contributing factors exist.
For example, many automakers are focusing on manufacturing high-margin new models to mitigate lower profits in other segments stemming from supply chain and production cost restraints. Fleet sales also increased by 11.8% in 2024, with many businesses selecting luxury models for reasons like recruiting new employees.
SUVs remain dominant in new sales
SUVs have experienced growing popularity in recent years, with the segment representing seven out of ten of the UK’s best-selling new cars in 2024.
This list of best-selling new SUVs from highest to lowest includes:
- Ford Puma
- Kia’s Sportage
- Nissan’s Qashqai
- Nissan’s Juke
- Tesla’s Model Y
- Hyundai’s Tucson
- MG’s HS
Tesla’s Model Y was also the UK’s best-selling EV in 2024.
Used car outlook for 2025
Used cars have remained popular, with drivers prioritizing purchase savings over novel tech. UK motorists can save an average of 40% buying pre-owned vs. new. Stats and trends indicate great opportunities if you’re looking to sell in 2025.
Pre-owned car sales
Auto Trader predicts that used vehicle sales will hold steady in 2025, increasing by 1% and placing the market within 3% of its pre-pandemic levels. The pandemic has spurred a 37% drop in the UK’s inventory of three-to-five-year-old cars since 2019, and the decline is set to rise in 2025, setting the stage for pre-owned vehicle prices to maintain or grow their current position from 2024’s strong sales.
Used EV prices rose 3.1% in Q4 2024 to £18,668 at 28 months and 17,514 miles, while petrol cars dominated 2024 online pre-owned sales with a 61.9% market share. Used diesel vehicles experienced a small rise of .7% in 2024’s Q4 to £18,668 at an average age of 43 months and 32,607 miles. The used diesel market share also hit a record low of 17.2% in Q4.
In December, the average used car price dropped 0.6% from November to £16,649.
EV industry growth overview
The EV industry is growing, but not at the rate the UK’s government would like, raising questions about industry expansion initiatives, like charging infrastructure development.
Experts expect electric car sales to increase to 440,400 in 2025, representing 24% of 1.84 million new car sales. In 2024, EVs accounted for 19.6% of total new vehicle sales. However, this increase to 24% still falls below the Zero Emission Vehicle (ZEV) mandate’s target for 2025. The ZEV mandate’s end goal is to ban all new petrol and diesel cars and sales by 2035.
Automakers are having trouble meeting mandate targets due to limited private demand, high EV costs, and charging infrastructure constraints.
EV pricing challenges
In 2024, only one in 10 drivers opted for an EV, with over 60% sticking with petrol. One significant factor limiting private demand is the higher average upfront cost of electric driving. In August, the median price of a new EV was £54,324.61, significantly higher than its gas or diesel counterparts. Automakers like Tesla were able to boost EV sales in 2024 with strategies like drastic price cuts, but the SMMT notes that this method isn’t sustainable in the long term.
The higher average costs of electric cars have paved the way for a boom in sales of Chinese-branded EVs, where prices are much lower than brands like Tesla. In April 2024, the average Chinese EV cost was estimated at just over £27,000. Drivers can expect the popularity of Chinese electric cars to grow in 2025 since the UK hasn’t yet imposed any tariffs on imports.
Charging infrastructure growth status
UK governments and businesses will accelerate the growth of EV charging infrastructure in 2025 using charging-as-a-service (CaaS). The more expensive alternative to CaaS is for governments and businesses to own and manage EV charging stations. Utilizing CaaS makes charging infrastructure costs more predictable while streamlining maintenance and accelerating station expansion rates.
Finance your next car the right way in 2025
Whether you’re looking to save money purchasing a used vehicle or joining the growing number of new SUV buyers, Car Finance Today simplifies your ability to get finance quotes while protecting your credit score and avoiding hidden fees.
Try our user-friendly Car Finance Calculator to estimate your monthly payments today, or head to our blog’s main page to find resources on other topics like credit score and licence requirements for car finance.
