Fleets continue to drive the new car market, responsible for almost two-thirds of all registrations in July, according to new figures from the Society of Motor Manufacturers and Traders. New car registrations to fleet and business increased by 11.2% year-on-year, while year-to-date there has been a 7.9% uplift.
Some 98,434 new cars were registered to fleets in the month, compared to 88,508 units in July last year. Including private registrations, there were 156,571 new cars registered in July, an 11.7% year-on-year increase, with private buyers accounting for 58,137 units, a 12.6% year-on-year rise.
Although compared with a relatively weak July last year, the performance marks an eighth consecutive month of growth as the market continues its longer-term recovery towards pre-Covid levels. Year-to-date, more than three-quarters of a million new cars have now been registered to fleet and business – a 7.9% increase on the units registered in the first seven months of 2025.
Related: Car schemes fuel corporate sustainability push
Overall, almost 1.3 million new cars have been registered year-to-date, with fleet and business accounting for almost 61% of the market. The SMMT now expects Battery Electric Vehicles to reach 27.4% of a 2.18 million-strong market by year end – up from a 26.8% share in April’s outlook but still far short of the zero emission vehicle mandate target.
Growth was driven by the uptake of electric vehicles, with plug-in hybrids up 33.6% to take a 14.9% share of the market, and hybrids up 11.6% to account for 13.2%. Battery Electric Vehicles achieved another record volume for the month, up 44.5% compared with July 2025, to claim a 27.5% share of the market.
Mike Hawes, SMMT chief executive, said: “July’s record EV performance is a great achievement, reflecting industry’s huge investment in zero emission mobility. But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties.”
Philip Nothard, insight director at Cox Automotive, says that July’s figures highlight both the strength and complexity of the UK’s automotive recovery. “Demand remains resilient, and the continued growth in EV registrations is a positive step towards decarbonisation,” he said.
Related: Firm adds electric trucks to its fleet
Paul Hyne, transport commercial director at Lloyds Banking Group, notes that the pattern of demand remains familiar, with “fleets doing much of the heavy lifting on volume” and private buyers steadily following as more affordable models reach the market.
Separate figures suggest 43,547 new Battery Electric Vehicles were registered in July, up from a year earlier. Electric vans also had a standout month, with 4,260 registered in July.
The Ford Puma was the best-selling car in July, according to SMMT data, with more than 3,500 versions registered. It also leads the year-to-date leaderboard, with 33,173 units registered, according to SMMT figures.
