Automotive News – Early September 2025
Estimated reading time 7 minutes
Five years on from Brexit, UK Automotive remains £115bn trading powerhouse.
- New SMMT Trade Report sets out UK Automotive’s £115 billion global trading hub status despite the most challenging environment in decades.
- Sector on course to generate more than £110 billion in trade for third year running, shipping vehicles, parts and components around the world.
- Brexit has fundamentally altered UK-EU automotive trade on both sides, so sector calls for closer relationship to support jobs, growth and decarbonisation.
- Rejoining Pan-Euro Mediterranean (PEM) Convention and clarity on tougher 2027 TCA rules of origin would all help deliver certainty and investment.
Five years on from Brexit, SMMT’s latest Trade Report, Unmarked Routes: Britain’s Pathway to Stronger Automotive Trade, sets out how the UK sector remains a global trading powerhouse, generating £115 billion in imports and exports last year. The sector is on course to generate more than £110 billion in trade for the third year running, shipping vehicles, parts and components around the world, in the face of incredibly tough conditions with tariff barriers, rising protectionism, and geopolitical uncertainty.
New car market shrinks in August but EVs reach record share for the year.
- New car market declines -2.0% in August to 82,908 units during typically quietest month of the year.
- Model choice, ongoing manufacturer discounts and some limited initial impact from the newly announced Electric Car Grant helped drive battery electric car share to 26.5%, the highest recorded in 2025, replicating previous performances for low volume month.
- September – usually the second biggest month of the year – critical for delivering BEV growth as new Electric Car Grant takes effect, with YTD market share at 21.9%.
UK new car registrations declined by -2.0% in August to 82,908 units, during what is normally the quietest month of the year – generally accounting for less than 5% of annual deliveries ahead of September’s number plate change.
The end of Summer typically brings a quieter period for the UK’s new car and LCV markets as buyers anticipate the September plate change. Given the tough economic and consumer environment that has impacted markets this year, August’s slight -2.0% decline in new car registrations – and a -13.3% fall in new LCV demand – may not be surprising. As we look ahead to an all-important Autumn, however, a return to growth is essential.
There were reasons to be positive in August. Growth in EV registrations of 14.9% for cars and 13% for vans bolstering year-to-date EV shares to a record 26.5% and 10.9% respectively, albeit still dominated by fleet rather than private consumer purchases. There is still substantial ground to make up to reach the mandated targets so September, which is typically the second busiest month of the year, will be pivotal. https://www.smmt.co.uk/august-brings-strong-ev-shares-in-low-volume-month/
Electric van demand doubles as overall market shrinks again.
- New light commercial vehicle (LCV) market contraction continues with -13.3% decline in August.
- Demand doubles (109.5%) for battery electric vans (BEVs), which pushes share to new high of 13.0%.
- Year-to-date BEV share rises to 9.1% but still far below mandated ambition of 16% for 2025, with steep ground to recover.
UK demand for new light commercial vehicles (LCVs) shrank by -13.3% in August with 14,365 new vans, pickups and 4x4s joining UK roads, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The contraction means volumes have fallen every month this year. August is generally the smallest-volume month ahead of ‘new plate’ September, and this month’s decline translated to 2,210 fewer registrations than last year and 111 less than the other pre-plate change month of March.
Toyota, Skoda, Peugeot and Vauxhall and Citroën models have been added to the UK Government’s new Electric Car Grant (ECG), which provides drivers with discounts of up to £3,750 on new electric vehicles (EVs).
The Department for Transport (DfT) has confirmed that motorists will benefit from a £1,500 discount on the upfront cost of the Toyota Proace City Verso, Toyota bZ4X, Skoda Elroq, Skoda Enyaq, Peugeot e-Traveller, Vauxhall Vivaro Life Electric and Citroën ë-Space Tourer models.
This brings the total number of models covered by the ECG to 35.
The past two weeks have been dreadful for Jaguar Land Rover (JLR), and the crisis at the car maker shows no sign of coming to an end.
A cyber-attack, which first came to light on 1 September, forced the manufacturer to shut down its computer systems and close production lines worldwide.
Its factories in Solihull, Halewood, and Wolverhampton are expected to remain idle until at least Wednesday, as the company continues to assess the damage.
HMRC has implemented new advice on how businesses should reimburse staff for charging their company-owned electric vehicles (EVs). Companies have been advised to increase reimbursement for both home and public charging.
HMRC has split the advisory electricity rate (AER) between home and public charging for the first time.
Sitting in the cab of an electric lorry for the first time, I am struck by the silence.
The hum of the electric motor is imperceptible, and it is only at speed that the sound of the rolling wheels on the road breaks through.
Liam Ely is driving. He’s been with his firm, Welch’s Transport, for four years. This Renault e-Tech T is his primary workspace – one of the UK’s first electric heavy goods vehicles (eHGVs).
The firm has three in a fleet of 70 otherwise diesel lorries. Based in Duxford, Cambridgeshire, Welch operates across the UK. https://www.bbc.co.uk/news/articles/c4g6wnzqgn2o
The UK’s electric vehicle (EV) market surged in August, with battery electric vehicle (BEV) registrations accounting for a 26.5% share of the new car market and electric van demand doubling compared with August 2024.
This is according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
The share of EVs in new car sales was the highest level recorded so far this year and the fourth highest on record.
More than 150 European business leaders have urged the European Commission to stick with its 2035 deadline for ending sales of new petrol and diesel cars, setting up a clash with several major carmakers that say the target is no longer achievable.
In an open letter addressed to Commission President Ursula von der Leyen, executives from companies spanning vehicle manufacturing, batteries, charging, software, materials and energy infrastructure said the target was critical to securing Europe’s industrial position in the global transition to electric mobility.
“Stand firm, don’t step back,” the group wrote. “Delaying the 2035 target, or broadening focus after 2035 to less efficient, transitional technologies, would stall progress, erode investor confidence, and permanently hand the advantage to global competitors.”
