Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show 144,127 cars rolled out of dealerships last month. It was a rise of 3.4% compared to January 2025, and represented the best start to a year since pre-pandemic 2020.
All buyer types saw growth: private retail was up 4.5%, fleets 1.6%, and low-volume business 46.5%. Fleets continued to dominate new car registrations, holding a 61.2% share of the market.
However, behind the headlines, uptake of new EVs barely moved.
Registrations of BEVs rose by just 0.1% to 29,654 units. It represented a 20.6% market share – far short of the 33% mandated by the government this year.
The SMMT said the figure was affected by a strong January 2025, where buyers rushed to avoid April’s introduction of new tax rates on BEVs, and manufacturers pushed sales at the end of 2025 to meet the ZEV Mandate.
The industry body has called for a ‘comprehensive review’ of the electric transition.
Plug-in hybrids led the growth, though, rising 47.3% to account for 12.9% of registrations. Hybrids rose 4.8%, while petrol and diesel both fell – 1.9% and 8.8%, respectively.
The SMMT’s latest market outlook predicts the year to top 2.048 million units.
The Kia Sportage was January’s top-seller with 4,675, followed the Jaecoo 7 (4,059) and the Ford Puma (3,715).
Commenting on the data, SMMT chief 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.’
Market is walking a tightrope
‘January’s results are encouraging but underline a market walking a tightrope. BEV volumes rose marginally but lost share, leaving the market some distance from the 33% EV share required under the ZEV mandate in 2026.
‘Progress is being made, but the gap between policy ambition and market reality remains.’
Philip Nothard, insight director, Cox Automotive Europe
‘While the new car market overall is in growth, the virtually flat performance of the electric market is an early concern, being well below the 33% mandate for new electric vehicle sales this year.
‘While almost two thirds of car buyers are considering an electric for their next car, there is clearly more to be done to ensure interest converts to sales. Mass electric adoption will need to come from the used market, but upfront affordability is the key barrier here so more government support is needed – such as extending the Electric Car Grant to used EVs.
Ian Plummer, chief customer officer, Autotrader
‘The growth in car sales in January provides a positive boost for manufacturers, particularly as this is the best start to a year since 2020.
‘However, growth in electric vehicle (EV) adoption stalled as EV market share dropped to the lowest level since last April. There remain a number of barriers for consumers purchasing EVs.
More than three quarters (79%) of UK consumers intending to acquire a battery electric or plug-in hybrid as their next vehicle expect to charge it at home, with only 12% stating they would charge it on-street or at a public charging station.
‘This further emphasises the need for dedicated investment into charging infrastructure, most importantly for those without access to a charger at home.’
Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte