
Q1 Sees Record Used Car Sales: A Bright Spot for the Automotive Market
The UK’s automotive industry has greeted 2025 with a significant boost, as used car sales exceeded two million transactions in the first quarter for the first time since 2019. According to the Society of Motor Manufacturers and Traders (SMMT), 2,020,990 used cars changed hands in Q1, marking a 2.7% increase year-on-year. This continued growth highlights a recovering market that is responding positively to increased supply from the new car sector.
Shifting Preferences in the Fuel Market
Among the cars sold, petrol vehicles continued to dominate the market, with a rise of 2.1% to 1,149,855 units. However, the diesel segment has begun to wane, with a 3.1% decline to 679,739 units. Combined, internal combustion engine (ICE) vehicles constituted 90.5% of total used transactions, though their market share dipped slightly due to a growing interest in electrified options. Notably, hybrids saw a record 30.2% increase in demand, while battery electric vehicles surged by an impressive 58.5%, illustrating a notable shift in consumer preferences.
The Continued Rise of Electric Vehicles
SMMT chief executive Mike Hawes emphasized that the future sustainability of this growth is tied to a healthy supply of electric vehicles (EVs) from the new car market. As more buyers opt for EVs, affordability and accessibility become crucial factors. Hawes highlighted the importance of fiscal incentives and a national network of charging points to facilitate broader adoption. With a record 3.3% share of transactions held by battery electric cars, the trend suggests that both consumers and businesses are warming up to green options.
A Market Shaped by Consumer Demand
Small cars remain the most sought-after choice in the used market, particularly superminis and small family cars, which account for over half of all transactions. As the landscape evolves, it's clear that dealers need to adapt not just to current consumer preferences but also to the broader changes shaping the automotive industry.
As we move forward, staying informed and understanding these trends is vital for anyone involved in the automotive market—from car buyers to industry professionals. Whether you are considering purchasing a used car or simply tracking market developments, the surge in sales and the pivot to electric vehicles signify an exciting phase for the UK automotive scene.
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