UK New Car Market Achieves Strongest February Performance in Over Two Decades
The United Kingdom's new car market has recorded its most robust February sales figures in 22 years, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). Some 90,100 new cars were registered during the month, representing a significant 7.2% increase from the 84,054 registrations recorded during the same period last year. This marks the highest February volume since 2004, demonstrating a notable recovery in consumer demand for new vehicles.
Private Retail Registrations Drive Market Recovery
Demand was largely propelled by recovering private retail registrations, which surged by 17.6% year-on-year. This substantial growth indicates renewed consumer confidence and purchasing power among individual buyers. Meanwhile, fleet registrations—comprising vehicles owned or leased by businesses and other organisations—accounted for nearly three out of every five sales, experiencing a more modest increase of 1.8% compared to the previous year.
February registrations are traditionally volatile as it typically represents a lower volume month, with many prospective buyers preferring to wait for the March numberplate change. Despite this seasonal pattern, the market demonstrated remarkable resilience and strength throughout the month.
Electric Vehicle Market Share Declines for Second Consecutive Month
While overall market performance showed strong growth, the market share of pure battery electric new cars experienced a decline from 25.3% a year ago to 24.2% in February. This represents the second consecutive month of decreasing market share for electric vehicles (EVs). The SMMT attributed this trend partly to the strong start to 2025, when some electric vehicle buyers brought forward their purchases to avoid the introduction of new tax rates.
Despite the declining market share, registrations for pure battery electric cars still increased by 2.8% in February. Meanwhile, plug-in hybrid electric vehicles saw a dramatic 43.5% spike in registrations, indicating continued consumer interest in electrified vehicles. Traditional internal combustion engine vehicles showed mixed results, with petrol car registrations up 5.2% while diesel registrations fell by 3.8%.
Industry Leaders Express Cautious Optimism and Concern
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 further emphasised the substantial investment manufacturers have committed to driving demand, noting that "such costs cannot be sustained indefinitely, making a review of the transition an urgent priority to ensure ambition matches natural demand."
Ian Plummer, chief customer officer at online vehicle marketplace Autotrader, offered additional perspective: "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 we saw in 2022," highlighting the potential impact of global events on consumer preferences.
Policy Considerations and Government Support
Ginny Buckley, chief executive of electric car buying advice site Electrifying.com, emphasised the importance of consistent policy signals: "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.
A Department for Transport spokesperson responded to the figures: "These figures show the UK is firmly on the road to widespread EV adoption with one in four cars sold in February electric. Backed by our support including the electric car grant which has helped over 70,000 people save thousands when buying new EVs, and £500 discounts off the cost of installing home chargers, we're making it cheaper and easier for drivers to make the switch."
The automotive industry now looks toward March, traditionally the most significant month for new car registrations, to gauge whether the positive momentum can be sustained throughout 2026. With the transition to electric vehicles remaining a central focus, industry stakeholders continue to monitor market dynamics and policy developments that will shape the future of personal transportation in the United Kingdom.
