Private retail demand increased by 4.5% in the UK new car market in January, but electric vehicle uptake softened, according to new Society of Motor Manufacturers and Traders (SMMT).
Private buyers registered 52,397 new cars in the month, up 4.5% year-on-year and accounting for 36.4% of the market.
Fleet registrations also rose, increasing by 1.6% to 88,269 units, while the business segment grew by 46.5% to 3,461 units. Fleets remained the dominant channel, representing 61.2% of all new car registrations.
Overall, the UK new car market grew by 3.4% in January to 144,127 units, marking the strongest start to a year since before the pandemic in 2020.
EV demand subdued
In contrast, demand for battery electric vehicles (BEV) was subdued. BEV registrations rose by just 0.1% to 29,654 units, while market share slipped to 20.6%, the lowest level since April 2025.
The SMMT said the weaker BEV performance followed a strong January last year, when demand was pulled forward ahead of changes to BEV taxation, as well as elevated registrations at the end of 2025 as manufacturers worked to meet regulatory targets.
Plug-in hybrids recorded the strongest growth among electrified powertrains, with registrations up 47.3% to account for 12.9% of the market. Hybrid electric vehicles rose by 4.8% to take a 13.4% share. Petrol and diesel volumes continued to decline, falling by 1.9% and 8.8% respectively.
Kia Sportage most popular model in 2026 so far
The Kia Sportage has had a strong start to the year, but the Jaecoo 7 is in second position, which is unique for a brand that is so new to the UK market.
Chinese brands Jaecoo, BYD and MG have all made it into the top 10 spots for January.
| January 2026 | Make | Model | Units registered |
|---|---|---|---|
| 1 | KIA | SPORTAGE | 4,675 |
| 2 | JAECOO | 7 | 4,059 |
| 3 | FORD | PUMA | 3,715 |
| 4 | NISSAN | QASHQAI | 2,995 |
| 5 | VAUXHALL | CORSA | 2,902 |
| 6 | BYD | SEAL U | 2,550 |
| 7 | NISSAN | JUKE | 2,517 |
| 8 | VOLKSWAGEN | TIGUAN | 2,425 |
| 9 | VOLKSWAGEN | GOLF | 2,072 |
| 10 | MG | HS | 2,035 |
Looking ahead, the SMMT’s latest outlook forecasts new car registrations to grow by 1.4% in 2026 to 2.048 million units, an upgrade on its previous forecast.
BEVs are now expected to account for 28.5% of the market next year, supported by greater model choice, improving range and the reintroduction of support through the Electric Car Grant.
This would still fall short of the 33% target set under the ZEV mandate.
Mike Hawes, chief executive of the SMMT, 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.”
Industry reaction to the start of 2026 new car market
Sue Robinson, National Franchised Dealers Association (NFDA) chief executive, said: “A strong start to the year bodes well for the months ahead, building on the two million new vehicle sales recorded in 2025.
“While headlines such as record low vehicle production may create negative sentiment, it is important to recognise the mitigating factors, including the JLR shutdown, rather than attributing this to a lack of stock at dealerships or broader manufacturing weakness.
“Franchised dealers remain resilient and well placed to support customers as the new car market continues to grow.
“The year ahead will be critical in addressing key challenges, including policy clarity, consumer confidence and the pace of the transition to zero-emission vehicles.”
Calls for used EV grant support
Ian Plummer, chief customer officer at Autotrader, said that while the overall new car market is growing, the near-flat performance of EVs is an early cause for concern.
He said that although almost two thirds of car buyers are considering an EV for their next car, more needs to be done to convert interest into sales.
Plummer added: “Mass electric adoption will need to come from the used market, but upfront affordability is the key barrier.
“More Government support is needed, such as extending the Electric Car Grant to used EVs.
Philip Nothard, insight director at Cox Automotive Europe, said that while January’s results are encouraging, they underline a market walking a tightrope.
Private registrations are recovering, and fleet remains the engine of growth, yet static interest rates and broader economic uncertainty continue to pressure affordability.
Nothard said: “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.”
MORE: New car registration figures (Source: SMMT)