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U.K. new-car registrations declined 5% year on year in July to 140,154 vehicles, according to data released by the Society of Motor Manufacturers and Traders. The drop follows a 6.7% increase in June and marks the first annual contraction in 10 months. SMMT said the setback reflects a combination of market volatility and softer consumer demand after a period of steady growth. July’s figure leaves total registrations for the year to date at roughly 1.2 million units, still ahead of the same period in 2024, but the industry group cautioned that higher borrowing costs and lingering supply constraints could weigh on sales through the rest of 2025.