By Dominic Chopping

The U.K. new car market declined in February, as a rise in private and business buyers failed to fully offset a drop in fleet registrations, an industry body said.

A total of 84,054 cars were registered in February compared with 84,886 in the same month last year, marking the fifth consecutive monthly decline, the Society of Motor Manufacturers and Traders said Wednesday.

Fleet registrations--which have driven previous market growth--fell by 4.0% on year, while private registrations rose by 4.6% and the much smaller business sector rose 3.3%.

Hybrid electric vehicle registrations rose 7.9% and plug-in hybrid registrations rose 19.3%, while battery electric vehicle registrations rose 41.7%, the SMMT said.

Battery electric vehicles took a 25.3% share of the market in February, which means its is currently running behind the U.K. government's requirement of 28% for this year, the SMMT said.

The increase in EV sales during the month is unsurprising considering upcoming tax changes in April, which will see many EV models subject to the vehicle duty supplement for expensive cars for the first time, the SMMT added.

March is likely to see a further surge in EV uptake, as buyers take their last chance to avoid the tax and also capitalize on the new 2025 license plate registration that will be available from March 1.

"Although February's figures show a subdued overall market, the good news is that electric car uptake is increasing," SMMT Chief Executive Mike Hawes said. "With the all-important March number plate change now upon us, and tax changes taking effect in April that will, perversely, dissuade EV purchases, we expect significant demand for these new products next month."

The U.K.'s top two best-selling cars in February were the Mini Cooper and Tesla Model 3, according to the SMMT.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 05, 2025 06:33 ET (11:33 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.