UK new car market grows in January but EV demand eases - SMMT

5th Feb 2026 11:02

(Sharecast News) - The UK new car market grew in January, although demand for battery electric cars eased, according to figures released on Thursday by the Society of Motor Manufacturers and Traders (SMMT).

The car market rose 3.4% to 144,127 units, marking the best start to a year since pre-pandemic 2020.

There was growth across all buyer types, with registrations by private retail buyers up 4.5% and fleets increasing by 1.6%, while the low-volume business segment rose 46.5%.

The SMMT said fleets remained by far the largest source of new car registrations, accounting for 61.2% of the market.

Uptake of battery electric vehicles rose just 0.1% to 29,654 units, however, delivering a 20.6% market share - the lowest since April 2025. This followed a strong performance in January 2025, when uptake was brought forward as buyers looked to avoid April's introduction of new tax rates on BEVs.

"Furthermore, the strong BEV performance at the end of 2025, with manufacturers pushing to meet regulatory targets, will also have affected the January market," the SMMT said.

SMMT chief executive Mike Hawes said: "Britain's new car market is building back momentum after a challenging start to the decade. It is also decarbonising more rapidly than ever and, despite a January dip in EV market share, the signs point to growth by the end of the year. The pace of the transition, however, may be slowing and is certainly behind mandated targets.

"With sales of new pure petrol and diesel cars planned to end in less than four years, there needs to be a comprehensive review of the transition now, to ensure ambition can match reality."