New car market grows in January despite fall in EV market share

The new car market rose by 3.4 per cent in January as 144,127 vehicles were registered across the UK, figures show.

Data from the Society of Motor Manufacturers and Traders (SMMT) shows that car registrations have had the best start to the year since pre-pandemic 2020.

Registrations of vehicles for private buyers rose by 4.5 per cent, while those for fleet grew by 1.6 per cent too.

Demand for electric vehicles, however, rose just 0.1 per cent during January at 29,654 vehicles – the lowest since April 2025. As a result, market share for EVs fell from 21.3 to 20.6 per cent.

However, the largest growth was recorded for plug-in hybrids, with registrations for this fuel type up 47.3 per cent on 2025’s figures, with 12,598 vehicles sold.

Petrol remains the firm favourite, however, and occupies a 47.7 per cent market share. Registrations, however, were down by 1.9 per cent, while those for diesel fell by 8.8 per cent to just 7,862 units. Diesel is now the least-registered fuel type within the UK.

Mike Hawes, SMMT chief executive, 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.”

The SMMT still forecasts that car registrations will grow by 1.4 per cent in 2026 to 2.048 million units. It represents an increase on the group’s October outlook.