The Year Cars Changed Direction- How Motoring Evolved in 2025
Yeah… so 2025 didn’t quite go the way the car industry expected. It was supposed to be the year we all plugged in and glided silently into an electrified utopia, but those dreams blew a fuse.
Meanwhile, the few who did buy new cars often ended up in models from Chinese brands many had never heard of. Dashboard designs reverted to something you’d recognise from 1990s family saloons. Then came the Autumn Budget, which might just prove to be the straw that breaks electrification’s back.
The big story was the ongoing push towards electric motoring, but it collided with economic headwinds, patchy public charging and a public increasingly confused by shifting policies. Most people simply want motoring to be hassle-free - instead, 2025 turned into a year of second thoughts.
This whistle-stop tour looks back at how 2025 redefined motoring. It wasn’t an apocalypse, but it was a major course correction, with real implications for the road ahead in 2026.
EV Revolution… on Pause?
The move to battery-only cars wasn’t exactly a smooth ride; it was a stuttering obstacle course that severely stymied progress.
The UK’s Zero Emission Vehicle mandate demanded that 28% of new car sales be fully electric, yet uptake flatlined at around 21.5% by mid-year. Last month, the Society of Motor Manufacturers and Traders (SMMT) revised its full-year BEV forecast to 23.5%, well short of expectations, with next year’s 33% target already looking like mission impossible.
Manufacturers panicked. Stellantis, Nissan, Toyota and JLR all lobbied hard for flexibility, calling the rules “unworkable” as demand slowed and supply chains strained. Former Stellantis boss Carlos Tavares warned the mandate was “terrible” and could “kill” the UK industry.
Nissan and JLR even raised the spectre of job cuts. Ford axed 800 roles in July.
Used EV values fell hardest. Average three-year-old models now retain less than 40% of their original value - petrol and diesel equivalents typically hold 60%. Buyers feared degrading batteries, a lack of charging infrastructure, high public charging costs, long-distance inconvenience and ongoing myths about spontaneous battery fires. Even the trade became reluctant to touch second-hand EV stock.
A Cunning Plan
But wait… with Baldrickian brilliance, the government announced it had a “cunning plan”.
The July Electric Car Grant offered either £1,500 or £3,750 off EVs under £37,000. The catch: strict sustainability criteria meant only about 40 models qualified. Still, some dealers matched the incentive, creating a modest mid-year spike.
Ministers boasted that 35,000 extra EVs hit the road. They’re so pleased with it that it’s been extended in the November Budget with £1.3 billion more funding through 2029-2030. Yet, with new taxes looming, the question remains whether grants can keep EV momentum alive.
Meanwhile, hybrids stole the show as the compromise kings. Plug-in models rose 15% as drivers embraced the reassurance of a petrol engine. Biofuels and synthetic e-fuels also re-entered the conversation, with Toyota and Porsche leading the charge.
The Rise of the Chinese Brands
If one trend defined 2025, it was the rise of Chinese cars. By October, brands such as BYD, MG (SAIC-owned), Geely (owns Volvo, Polestar and Lotus), GWM ORA, Omoda, Jaecoo, Chery and XPeng grabbed 13% of UK new car registrations, up from 5% the year before.
The appeal was simple: price. Chinese EVs often undercut European rivals by 20-30%, while offering strong tech, rapid charging and quick software updates. Cars like the Jaecoo 7, MG HS, MG4 EV, Omoda E5 and BYD Seal U climbed the charts, overtaking long-established favourites.
Drivers hesitated over unfamiliar badges and patchy dealer coverage, but for families juggling tight budgets and salary-sacrifice options, they made strong financial sense.
Button It! Tech Fatigue and Safety Pushback
Remember when you could adjust the fan without navigating five sub-menus? 2025 marked the return of the humble button.
Euro NCAP indicated that from 2026, the five-star safety ratings that car makers crave, might only be achieved by cars with physical controls for key functions. Research showed drivers spend up to 40 seconds longer interacting with screens than switches. At 30mph, your car will have gone a third of a mile - that’s the length of four and a half football pitches - with your eyes off the road!
Plus, drivers have had enough of digging through touchscreen menus just to adjust the wing mirrors or open the glove box! Manufacturers hurried back to the drawing board, restoring intuitive, tactile controls. A rare victory for common sense.
Pay-Per-Mile Confirmed for 2028
Then came the Autumn Budget bombshell: pay-per-mile (PPM) road tax rolls out in April 2028, slapping 3p per mile on EVs and 1.5p on plug-in hybrids to claw back £1.1 billion lost from fuel duties. For the average EV driver, expect an additional £255 yearly on 8,500 miles on top of annual VED (road tax).
It’s been suggested that the mileage would be recorded and charged during the annual MOT, adding to what is already a financially painful moment for many motorists.
However, the Chancellor seems to have forgotten that new cars don’t face MOTs for three years. Additionally, this fuels “clocking” fears as it’s almost inevitable that some will resort to tampering with odometers (frankly, relatively easy in a digital era).
Despite being sold as “fair,” the measure risks discouraging EV adoption further. Weekend drives, spontaneous trips and classic cruises suddenly come with a mental price meter.
The OBR estimates that the policy could mean around 440,000 fewer EVs being sold by 2030, putting carmakers in an even tighter bind under the ZEV mandate. This is also likely to further steepen depreciation curves, which could entirely crash the used market for EVs and even PHEVs.
The Shocking New Costs of Repair - And Why Warranties Matter
Repair costs surged in 2025. According to Thatcham Research, EV and tech-heavy vehicles now cost 25% more to repair and take 14% longer. Batteries? £10,000-plus swaps if damaged - often resulting in an insurance write-off.
Autonomous and advanced driver assistance systems, such as cameras, radars and lidars in bumpers and windscreens, could turn a £300 dent into a £2,000 bill (just the recalibration can cost up to £400!). Infotainment screen glitches? You’re looking at least £250 for a replacement. Entire units can be £1,000 to £3,000. Popular models saw repair costs rise by up to 20%.
Warranties have become more essential than ever, covering not just traditional mechanical malfunctions but also high-voltage horrors and sensor snafus. MotorEasy’s plans cover the complex faults that worry drivers most, smoothing repair costs and reducing the financial shock that tech-laden cars can deliver.
What’s Next?
2025 was motoring’s pivot year - where the EV transition stalled, hybrids held hope, buttons started trending again and Chinese brands muscled in. Pay-per-mile looms as a tax on freedom, and drivers are increasingly cautious, preferring thoughtful evolution over frantic revolution.
Whether you’re running the family hatchback or buying a used EV for the first time, make sure you’re not caught off-guard by expensive repairs. The more tech cars pack in, the more peace of mind a MotorEasy warranty brings.
