SMMT new registrations: New car registrations up but EV growth stalls
The latest SMMT new registrations data saw registrations of new cars rise by 3.4% in January 2026 to 144,127 units.
Battery electric vehicle (BEV) registrations growth stalled with a 0.1% change to 29,654, resulting in a slip in market share to 20.6% - sitting way below the government’s 28% target set for 2025. Plug-in hybrid electric vehicle (PHEVs) registrations saw growth, with an increase of 47.3% year-on-year and a 12.9% overall market share.
Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, comments: “New car registrations started the year on a high with an overall uptick of 3.4%. Plug-in hybrid vehicles continue to see the strongest annual growth but the slowdown in battery electric vehicles could signal a worrying headwind.
“The combination of lack of investment in high-speed charging and many homes still without at-home options due to on street parking - consumers may be finding the charging challenge too much to tackle. If growth continues to stall, then more investment in the UK’s charging infrastructure will be needed to compel consumers to switch.
“In 2024, the Environment and Climate Change Committee published its strategy noting that progress is not happening fast enough, and major barriers remain. Tackling the disparity in upfront costs between EVS and petrol and diesel alternatives, ensuring charging is reasonably priced, equalising VAT rates for domestic and public charging and expediting the roll out of the charging network were all key recommendations which are still to be implemented.
“The barriers to adoption are just as valid today as when the findings were published two years ago. If growth continues to stall, then more investment in the UK’s charging infrastructure will be needed to compel consumers to switch.”
She added: “However, we can’t see a trend from one month’s data and it is hoped that with more cost-effective electric models, such as Renault 5 closing the pricing gap, the BEV market share will start to accelerate in 2026. What needs watching is whether demand for hybrid vehicles tapers off following the post-budget double whammy which will see drivers hit with an increase in fuel duty, plus a new road tax for EVs and hybrids.”