UK New Car Sales Reach 22-Year February Peak Amid Mixed Electric Vehicle Performance
The UK's new car market has achieved its strongest February sales performance in 22 years, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Some 90,100 new cars were registered last month, marking a significant milestone for the automotive industry.
This represents a notable increase of 7.2% from the 84,054 registrations recorded during the same month last year. The February volume is the highest seen since 2004, demonstrating a robust recovery in consumer demand despite broader economic uncertainties.
Driving Forces Behind the Sales Surge
Demand was largely propelled by a substantial recovery in private retail registrations, which surged by 17.6% year-on-year. This rebound indicates growing consumer confidence and willingness to invest in new vehicles.
Additionally, uptake for fleets owned or leased by businesses and other organisations accounted for nearly three out of five sales, showing a modest increase of 1.8%. February registrations are often volatile due to the traditional lower volume nature of the month, as many buyers prefer to wait for the March numberplate change.
Electric Vehicle Market Share Declines for Second Consecutive Month
Despite the overall market growth, the share of pure battery electric new cars experienced a decline, dropping from 25.3% a year ago to 24.2%. This marks the second consecutive month of decrease in electric vehicle market penetration.
The SMMT attributed this trend partly to the strong start of 2025, when some electric vehicle buyers accelerated their purchases to avoid the introduction of new tax rates. Nevertheless, registrations for pure battery electric cars still saw a modest rise of 2.8% in February.
Varied Performance Across Fuel Types
Petrol cars demonstrated solid growth with a 5.2% increase in registrations, while diesel vehicles faced a decline of 3.8%. Plug-in hybrid electric vehicles, however, witnessed a remarkable spike of 43.5% in registrations, highlighting shifting consumer preferences within the alternative fuel segment.
Industry Leaders Voice Concerns and Optimism
Mike Hawes, SMMT chief executive, commented: "The UK's new car market is continuing to recover and EV volumes are growing too, even if market share remains disappointing. All eyes are now on 'new plate' March, which typically sets the tone for the year – and given sales of new pure petrol and diesel cars are currently required to end in less than four years, EV uptake must accelerate rapidly."
Hawes emphasised that manufacturers have committed monumental investment to drive demand, but such costs cannot be sustained indefinitely. He called for a review of the transition to ensure ambition matches natural demand.
Ian Plummer, chief customer officer at online vehicle marketplace Autotrader, noted: "February delivered another solid month for the new car market, reflecting the underlying strength of buying demand we've continued to see so far in 2026. While the situation in the Middle East adds a potential layer of uncertainty for businesses and consumers amid wider economic disruption, the new car market has remained resilient so far."
Plummer added that any sustained shock to oil prices is likely to increase interest in electric vehicles when it feeds into petrol prices, as witnessed in 2022.
Policy Implications and Future Outlook
Ginny Buckley, chief executive of electric car buying advice site Electrifying.com, warned: "The worst thing ministers could do now is send mixed signals on EV running costs. The direction of travel is clear: drivers want cheaper running costs and greater energy security. Policy should reinforce that shift towards fully electric vehicles, not slowing it down."
Under the Government's zero-emission vehicle (Zev) mandate, at least 33% of cars sold by each manufacturer this year must be zero-emission, which generally means pure battery electric. However, companies are able to utilise flexibilities to achieve compliance, such as selling large numbers of plug-in hybrids.
The automotive industry now looks ahead to March, traditionally a key month for new car sales due to the numberplate change, which will likely set the trajectory for the remainder of the year amidst evolving market dynamics and regulatory pressures.
