Utility vehicles have become an unmistakable presence on British roads. From family SUVs to electric vans and rugged off-roaders, these vehicles are shaping the way the UK moves, works, and travels. In 2025, the sector is undergoing rapid transformation, driven by changing consumer preferences, government policies, and technological innovation. This article explores the latest trends, statistics, and expert opinions shaping the utility vehicle landscape in the UK.
The SUV Surge: Britain’s Favourite Utility Vehicle
Sport Utility Vehicles (SUVs) now dominate the British car market. In 2025, more than half of all new car models available in the UK are SUVs, marking a significant shift from just a generation ago. Research shows that 52% of new models from the top 35 manufacturers are SUVs, and every major brand now offers at least one SUV in its line-up. Brands like Audi, BMW, and Mercedes lead the way, offering a combined total of 46 distinct SUV models.
This surge is not just about variety. Consumer demand is driving the trend, with eight of the top ten best-selling vehicles in 2025 being SUVs. The Ford Puma currently holds the title of the UK’s top-selling car, highlighting the popularity of compact crossovers. The number of new SUV models has grown by 18% in just one year, reflecting the public’s appetite for vehicles that combine space, style, and versatility.
Electric Utility Vehicles: Charging Ahead
The electric revolution is reshaping the utility vehicle market. In 2024, electric vehicles (EVs) accounted for 19.6% of all new car registrations in the UK—a record high. Sales of electric utility vehicles, including SUVs and vans, are rising rapidly. In January 2025 alone, EV sales increased by 41.6% compared to the previous year, even as the overall car market contracted.
At the start of 2025, there were around 1.3 million electric vehicles on UK roads, making up roughly 4% of all registered vehicles. The government’s target requires that 28% of all vehicle sales in 2025 be zero-emission, a goal that is shaping manufacturer strategies and consumer choices. The UK’s charging infrastructure is expanding quickly, with over 73,000 public charging points and more than 7,000 ultra-rapid chargers now available nationwide.
Electric utility vehicles are not just for private motorists. Businesses are increasingly turning to electric vans and light commercial vehicles (LCVs) to meet sustainability goals and comply with low-emission zone regulations. In April 2025, demand for new battery electric vans weighing up to 4.25 tonnes grew by 77.5%, representing 8.3% of the market—a significant leap from the previous year.
The Commercial Vehicle Challenge
While the overall utility vehicle market is booming, the commercial vehicle sector faces some headwinds. UK car and commercial vehicle production fell by 15.8% in April 2025, reaching the lowest level for that month since 1952, excluding the pandemic year. This decline is attributed to international trading uncertainty, model changeovers, and restructuring within the industry.
Despite these challenges, the outlook for electric commercial vehicles remains positive. The UK market now offers nearly 40 different models of electric vans, with more being launched each year. Manufacturers are investing in battery technology, improved range, and faster charging to meet the needs of logistics, construction, and public sector fleets.
The Rise of Versatility and Lifestyle Vehicles
The popularity of SUVs and crossovers reflects a broader shift in British lifestyles. Modern utility vehicles are designed to support active families, outdoor enthusiasts, and professionals who value flexibility. Features like all-wheel drive, increased ground clearance, and advanced safety systems make these vehicles suitable for a range of uses, from school runs to countryside adventures.
Technological advancements have made utility vehicles more fuel-efficient and enjoyable to drive. Improved suspension systems, better weight distribution, and the integration of connected features such as real-time traffic updates and predictive maintenance have enhanced the driving experience. As a result, utility vehicles now appeal to a wider audience, including those who may not have considered them in the past.
Environmental Concerns and Policy Response
The rapid growth of SUVs and larger utility vehicles has sparked debate about their environmental impact. In 2023, SUV sales in the UK grew by 23%, with registrations exceeding 1.12 million. By 2025, SUVs accounted for 60% of all new car registrations. However, 83% of these vehicles are still powered by petrol, diesel, or hybrid engines, raising concerns about carbon emissions and air quality.
Environmental groups and some policymakers are calling for stricter regulations, including weight-based taxes on the heaviest vehicles and limits on vehicle width. The government’s commitment to ban new petrol and diesel cars by 2035, and hybrids by 2030, is expected to accelerate the shift towards electric utility vehicles. Industry experts stress the need for more affordable electric models to reach a broader market and help the UK meet its net-zero targets.
Market Outlook: Growth and Innovation
The utility vehicle market is set for continued growth. Analysts predict that by 2030, 80% of all cars and 70% of vans sold in Great Britain will be zero-emission vehicles. The electric utility vehicle market alone is expected to grow at a compound annual rate of 10.6% in the coming years, driven by government incentives, corporate sustainability goals, and advances in vehicle technology.
Manufacturers are responding with a wave of new models, from compact electric SUVs to heavy-duty electric vans. The expansion of charging infrastructure and the development of longer-range batteries are making electric utility vehicles more practical for everyday use. As the market evolves, consumers can expect greater choice, improved affordability, and enhanced performance.
Expert Insights and Industry Voices
Industry leaders and experts agree that utility vehicles are at the forefront of the UK’s transport transformation. Ralph Palmer, UK Electric Vehicle and Fleets Officer at Transport & Environment, warns that the continued growth of large, polluting SUVs could undermine progress towards net-zero targets. He urges carmakers and the government to prioritise smaller, more affordable electric vehicles to ensure mass-market adoption and environmental sustainability.
The Society of Motor Manufacturers and Traders highlights the importance of investment in manufacturing, research, and workforce skills to maintain the UK’s competitiveness in a rapidly changing global market. As new trade deals and regulatory frameworks emerge, the industry must adapt to ensure long-term growth and resilience.
