UK New Car Market Accelerates with 3.4% January Growth
The UK's new car market has shown a positive start to the year, with official figures revealing a 3.4% increase in registrations during January. According to data released by the Society of Motor Manufacturers and Traders (SMMT), a total of 144,127 new cars were registered last month.
This represents a notable uplift from the 139,345 vehicles registered during the same period in the previous year. The SMMT highlighted that this performance marks the industry's strongest January since 2020, a period before the widespread implementation of coronavirus restrictions that significantly impacted the sector.
Electric Vehicle Market Share Experiences January Dip
While the overall market grew, the figures revealed a notable shift in the electric vehicle segment. Pure battery electric new cars captured a market share of 20.6% in January, which the SMMT noted was their lowest monthly figure since April 2025.
Registrations for these zero-emission vehicles grew by a marginal 0.1% year-on-year. The trade body suggested this softening followed exceptionally strong demand at the end of last year, when manufacturers were pushing to meet regulatory targets, which inevitably affected the January market dynamics.
Hybrid Surge Contrasts with Petrol Decline
The data presented a mixed picture across different powertrains. New petrol car registrations experienced a 1.9% decline, continuing a longer-term trend away from traditional combustion engines.
In contrast, plug-in hybrid vehicles – which combine a traditional combustion engine with an electric motor and a battery that can be charged via a plug – saw a remarkable 47.3% surge in registrations. This significant growth indicates shifting consumer preferences within the electrified vehicle market.
Industry Leaders Call for Comprehensive Transition Review
SMMT chief executive Mike Hawes commented on the figures, stating: "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."
However, Hawes added a note of caution: "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."
This concern relates directly to the Government's zero-emission vehicle (Zev) mandate, which requires that at least 33% of cars sold by each manufacturer this year must be zero-emission, typically meaning pure battery electric vehicles. Manufacturers do have some flexibility in achieving compliance, including through the sale of plug-in hybrids.
Marketplace and Lobby Group Perspectives
Ian Plummer, chief customer officer of online vehicle marketplace Autotrader, described the "virtually flat" January performance of pure battery electric new cars as "an early concern", particularly as they remain well below the 33% mandate threshold.
Plummer elaborated: "While almost two-thirds of car buyers are considering an electric for their next car, we need to ensure that consideration turns into actual sales, so there is clearly more to be done. 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."
Tanya Sinclair, chief executive of lobby group Electric Vehicles UK, offered a broader perspective: "Battery electric registrations may have softened slightly in January, while plug-in hybrids rose on the back of discounting. British consumers are still moving towards cars with plugs, and away from those without."
The January figures therefore present a complex picture of an automotive industry in transition, showing overall growth but highlighting the challenges in accelerating the shift to fully electric vehicles at the pace required by regulatory targets.
