SMMT new vehicle registration preview: tariff uncertainty undermines UK net zero targets
Ahead of the release of Monday’s SMMT new registrations data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “Further growth in the battery electric vehicle (BEV) market is expected, as surging pump prices and fuel rationing fears erode the appeal of petrol and diesel vehicles. The real question is whether this EV boost will be enough for the UK market to catch up to the government’s net zero targets.
“With current SMMT forecasts for the UK’s BEV market share tracking below the 33% mandate for 2026, boosting EV adoption remains a key challenge for UK carmakers. At the same time, policymakers face increasing pressure to choose between investment opportunities from Chinese manufacturers and access to the EU’s ‘Made in Europe’ initiatives. If the UK aligns more closely with European markets by imposing high tariffs on Chinese EV’s, this risks significantly limiting availability of cost-effective models, which could, in turn, hamper EV registrations.
“This is a pivotal moment for the UK car industry. Supporting long-term transition goals remains paramount, but greater clarity over policy direction and strategy is needed to facilitate long-term investment in the UK EV market.”