UK Car Market: Strong Start for 2026, but BEVs Stall
The UK new car market saw its best start since 2020, with registrations growing 3.4% in January to reach 144,127 units. However, while the overall market is rising, the momentum for Battery Electric Vehicles (BEVs) has hit a temporary plateau.
Overall Market: Up 3.4%, signalling a robust recovery.
BEVs: Uptake rose a marginal 0.1%, with market share sitting at 20.6%, the lowest since April 2025.
PHEVs (Plug-in Hybrids): The standout performers, surging 47.3% to claim 12.9% of the market.
HEVs (Hybrids): Steady growth of 4.8%, making up 13.4% of registrations.
Why the BEV Slowdown?
Several factors contributed to the sluggish January for pure electric cars:
Tax Changes: A strong January 2025 created a tough comparison, as buyers last year rushed to beat new BEV tax rates introduced in April.
Year-End Push: Manufacturers pushed hard at the end of 2025 to meet regulatory targets, potentially exhausting immediate demand.
Looking Ahead to 2026
Despite the slow start, the SMMT has upgraded its full-year forecast. Total registrations are expected to hit 2.048 million units (up 1.4%).
Thanks to the reintroduction of the Electric Car Grant and better model variety, BEVs are projected to reach a 28.5% market share by year-end. While this shows progress, it still trails the government’s mandated 33% target.
