EVs and hybrids make up majority of new car registrations

Electric and hybrid vehicles made up the majority of new car registrations for the first time last year, new figures from Revenue show.

The figure shows that they made up 57% of registrations showing a substantial increase from the year before, when they accounted for 46%.

The county that had the highest number of EV/hybrid car registrations was Meath (66%), while Monaghan saw the fewest (43%).

Overall new vehicle registrations increased 3.6% to 167,875 last year, while there was a significant rise in used vehicles being registered from 85,606 to 98,605 (15.2%).

EVs and hybrids made up for 44% of all new registrations when other vehicles such as buses and lorries are taken into account.

The data also shows that Japanese imports surpassed imports from the UK for the first time.

UK used car imports increased by 9% to 36,227, while there were 36,604 Japanese imports – 24% more than in 2024.

The Vehicle Registration Tax report said this was likely due to post-Brexit import costs as well as a narrowing price difference.

Average selling price and 'shift towards electric and hybrid'

The report said the average selling price of vehicles has risen 43% since 2019 from €30,500 to almost €43,500.

It said that this increase "reflects the shift towards electric and hybrid vehicles".

"VRT data shows that the average price of an electric vehicle is significantly higher than that of an ICE (internal combustion engine) vehicle," it added.

The average open market selling price for an electric vehicle in 2025 was €47,300, while it was €38,400 for a petrol/diesel vehicle.

It said that although there is a sharp difference in price, vehicle registration tax on petrol/diesel cars averages around 20%, while it is 7% for electric vehicles.

Weighted average decline in VRT rates

Revenue collected €938m in Vehicle Registration Tax last year, €11m lower than the year before.

The tax, which is paid when a vehicle is first registered in the state, is calculated based on a vehicle’s value, CO2 output, and Nitrogen Oxide output.

The trend towards electric and hybrid has "accelerated the decline" in the weighted average VRT rate, according to Revenue, which said that it fell to 14% in 2025 which is its lowest level on record.

"There has been considerable change in the vehicle market in recent years. The UK’s departure from the EU, the Covid-19 pandemic, the move towards electric vehicles, and fuel price changes have all impacted on registrations and receipts.

"In 2025, the import landscape continued to diversify, with used car imports from Japan exceeding those from the UK for the first time, reflecting the ongoing effects of Brexit-related import costs and supply chain adjustments."