Public Transport Revival Drives Record Fleet Investment

The UK's public service vehicle sector has achieved its strongest start to a year since 2008, marking eight consecutive quarters of growth as operators invest confidently in fleet renewal. According to figures released by the Society of Motor Manufacturers and Traders (SMMT), new bus, coach, and minibus registrations surged by 49.8% in the first quarter of 2025, with 2,532 vehicles joining Britain's roads. This remarkable growth reflects a significant recovery in passenger numbers following the pandemic-induced slump, giving operators the confidence to invest in new vehicles at levels not seen for nearly two decades. The sustained pattern of growth indicates a fundamental shift in public transport utilization across the UK, with increasing numbers of passengers choosing buses and coaches for their daily travel needs. This revival comes at a crucial time for the public transport sector, which plays a vital role in providing affordable mobility solutions while simultaneously addressing congestion and emissions challenges in urban environments.

Growth Spans All Vehicle Categories and UK Nations

The first quarter's impressive performance was driven by strong growth across all vehicle segments, with minibuses delivering the largest volume increase. Registrations in this category rose by 52.6% to reach 1,299 units, accounting for just over half of all new vehicles. Single-deck buses and coaches saw registrations climb by 29.6% to 691 units, while double-decker buses experienced the most dramatic percentage growth at 77.1%, with 542 new vehicles entering service. The geographic distribution of this growth was similarly broad-based, with all four UK nations recording significant increases. England, which represents the largest market share at 77.2%, saw registrations rise by 33.7% to 1,954 units. Scotland experienced extraordinary growth with registrations more than tripling, up 213.7% to 389 units. Wales and Northern Ireland also posted strong performances, with increases of 78.3% and 90.5% respectively, reaching 148 and 40 units. This nationwide pattern of investment suggests a coordinated approach to improving public transport provision across diverse urban and rural communities.

Zero Emission Revolution Leads UK Transport Decarbonization

The most striking aspect of the quarter's performance was the dramatic acceleration in zero emission bus adoption, with registrations more than doubling compared to the same period last year. The 129.5% increase brought the total to 739 zero emission buses, representing 29.2% of all new registrations – making buses the UK's most advanced sector for road transport decarbonization. This impressive achievement positions the UK as Europe's largest market for zero emission buses by volume, highlighting the country's leadership in sustainable public transport. The rapid transition has been facilitated by significant manufacturer innovation, with nearly 20 different zero emission models now available to operators. Government support through the Zero Emission Bus Regional Area (ZEBRA) grants has also played a crucial role in accelerating adoption by helping operators overcome the higher upfront costs of electric and hydrogen buses. The concentration of zero emission vehicles in the single and double-decker categories reflects their primary deployment on urban routes where they deliver maximum environmental benefits through reduced emissions and noise pollution.

Regional Disparities Highlight Infrastructure Challenges

While the overall picture shows impressive progress toward decarbonization, regional data reveals significant variations in adoption rates. The South East led registrations with 727 new vehicles (up 37.7%), followed by Scotland with 389 (up 213.7%), and the South West with 334 (up 35.2%). Yorkshire and Humberside saw an 86.4% increase to 233 units, while the North West was the only region to experience a decline, with registrations falling 37.6% to 164 units. These disparities highlight the uneven nature of the transition to zero emission public transport, with urban areas generally progressing faster than rural communities. The challenge is particularly acute for smaller operators serving less densely populated regions, where longer routes, lower ridership, and tighter profit margins make the business case for zero emission vehicles more challenging. These operators often lack the resources to secure funding support or invest in the necessary charging or hydrogen refueling infrastructure, creating a risk of a two-tier transition that leaves some communities behind in the journey to sustainable transport.

Industry Calls for Comprehensive National Strategy

In response to these challenges, industry leaders are calling for a comprehensive national strategy to ensure the benefits of zero emission buses reach all communities. Mike Hawes, SMMT Chief Executive, emphasized the sector's dual role in driving economic growth and environmental progress, stating: "Eight consecutive quarters of bus rollout growth reflects recovering passenger numbers and, as a result, more operators investing in fleet renewal. The sector is an essential driver of growth in society and the economy and that growth is also green with zero emission rollout more than doubling to offer affordable access to sustainable mobility, cleaner air and quieter roads in more communities across the country." The SMMT has highlighted the need for targeted funding and infrastructure development to support smaller and rural operators in making the transition. A national plan for depot and shared hub infrastructure would be particularly beneficial, creating economies of scale that could make zero emission buses viable for a wider range of routes and operators.

Manufacturers Expand Zero Emission Offerings

The rapid growth in zero emission bus adoption has been enabled by significant investment from manufacturers, who have expanded their product ranges to meet diverse operational requirements. With almost 20 different zero emission models now available in the UK market, operators can select vehicles that match their specific route profiles, passenger capacities, and charging preferences. Battery electric buses dominate the zero emission segment, offering operational ranges that are increasingly suitable for urban and suburban routes. Meanwhile, hydrogen fuel cell technology is gaining traction for longer-distance applications where quick refueling and extended range are priorities. This technological diversity is crucial for achieving comprehensive decarbonization across different operating environments. Manufacturers have also made significant progress in addressing early concerns about range anxiety, battery longevity, and reliability, with newer models offering performance increasingly comparable to their diesel counterparts. The growing maturity of the zero emission bus market is reflected in the confidence with which major operators are committing to ambitious fleet transition timelines.

Economic Benefits Extend Beyond Environmental Gains

The surge in new bus registrations delivers economic benefits that extend far beyond the environmental advantages of reduced emissions. The UK's bus manufacturing sector employs thousands of skilled workers across the country, with companies like Alexander Dennis, Wrightbus, and Optare producing vehicles that are exported globally. The transition to zero emission technology has created new high-value engineering and manufacturing jobs, supporting the government's leveling up agenda by distributing economic opportunities across different regions. Additionally, the improved passenger experience offered by modern, quiet, and clean buses helps attract more riders to public transport, reducing congestion and supporting local economic activity. For passengers, the health benefits of reduced air pollution represent a significant but often overlooked economic advantage, with potential savings in healthcare costs and improved productivity. The bus sector's leadership in decarbonization also provides valuable lessons for other transport modes, potentially accelerating the broader transition to sustainable mobility through shared knowledge and supply chain development.

Future Challenges Require Coordinated Approach

Despite the impressive progress, significant challenges remain on the road to complete decarbonization of the UK's bus fleet. The SMMT has highlighted the need for a long-term strategy to help smaller and rural operators make the switch to zero emission vehicles. These operators face particular challenges including lower ridership, tighter margins, and longer routes, making the business case for zero emission vehicles more difficult without targeted support. Infrastructure development remains a critical bottleneck, with many depots requiring substantial electrical upgrades to support charging multiple vehicles simultaneously. For hydrogen buses, the limited refueling network presents an additional barrier. Addressing these challenges will require coordination between central government, local authorities, energy providers, and operators to ensure that infrastructure development keeps pace with vehicle deployment. Training programs for drivers and maintenance staff also need expansion to build the skills necessary for operating and maintaining advanced zero emission vehicles. With the right support framework, the UK can build on its current leadership position to achieve comprehensive decarbonization of its bus fleet, delivering environmental, social, and economic benefits to communities nationwide.

Key Takeaways:

• UK bus and coach registrations surged by 49.8% to 2,532 units in Q1 2025, marking the best first quarter since 2008 and the eighth consecutive quarter of growth as rising passenger numbers boost operator confidence

• Zero emission bus uptake more than doubled with a 129.5% increase to 739 units, representing 29.2% of all new registrations and cementing the UK's position as Europe's largest market for zero emission buses

• While growth was recorded across all four UK nations, industry leaders are calling for a comprehensive national strategy to help smaller and rural operators overcome challenges including infrastructure limitations and higher upfront costs