2025 Automotive Trends

The UK automotive industry is set for big changes in 2025. This is due to more people using electric vehicles (EVs), new technology, and changing consumer preferences. This highlights the automotive trends for 2025.

Key Automotive Trends:

1. More Electric Vehicle Adoption

  • Increased EV Sales: EVs are expected to constitute approximately 23% of new car sales in 2025, up from 19.6% in 2024.
  • Zero Emission Vehicle (ZEV) Mandate: The UK government has set a target for 28% of new car sales to be zero-emission vehicles by 2025, escalating to 80% by 2030. Manufacturers are under pressure to meet these targets, with potential fines for non-compliance.

2025 automotive trends - zero emission vehicles

2. Expansion of Charging Infrastructure

  • Significant Investments: Over £500 million has been approved for EV charging infrastructure projects across the UK in the past 18 months. This aims to support the growing number of EVs on the road.
  • Government Initiatives: Efforts are underway to streamline planning and permitting processes to accelerate the deployment of charging stations. Addressing one of the main barriers to EV adoption.

3. Technological Advancements

  • Connected and Autonomous Vehicles: The integration of advanced driver-assistance systems (ADAS) and connectivity features is set to enhance vehicle safety and user experience. The adoption of Ethernet technology within vehicles is facilitating faster data transmission, supporting these advancements.
  • Artificial Intelligence (AI): AI is playing a pivotal role in vehicle development. From autonomous driving capabilities to personalised in-car experiences, reflecting a broader trend towards digital transformation in the automotive sector.

4. Challenges in Consumer Demand

  • Private Buyer Hesitancy: Despite the push towards electrification, only about 10% of private buyers opted for EVs in 2024. This indicates a need for increased consumer incentives and education to boost adoption rates.
  • Affordability Concerns: The average price of new cars has risen significantly. Dealers often position EVs at higher price points, which can deter cost-conscious consumers.

5. Regulatory Environment

  • Review of EV Targets: In response to industry feedback, the UK government is reconsidering stringent EV sales targets to balance environmental goals with market realities, ensuring the transition to electric mobility is feasible and sustainable.

These 2025 automotive trends highlight a transformative period for the UK automotive industry. Characterised by a concerted shift towards electrification, significant infrastructure investments, and the integration of advanced technologies, all amidst a complex regulatory and consumer landscape.