The UK’s new car market recorded its strongest May performance since before the pandemic, with registrations rising 7.1 per cent to 160,662 units, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
While the recovery marks a notable rebound in consumer demand, volumes remain 12.6 per cent below pre-Covid levels.
The uplift was driven primarily by private buyers, where registrations jumped 17.2 per cent as motorists responded to a wider choice of models and increasingly aggressive manufacturer incentives.
Overall model availability rose 6.4 per cent, while battery electric vehicle (BEV) options expanded by 25.6 per cent year-to-date, underlining the rapid reshaping of the market.
Fleet demand — which continues to dominate the market — rose a more modest 1.8 per cent and accounted for 57.1 per cent of total registrations. Business purchases, however, fell sharply by 18.8 per cent, although the decline represented only a small fall in absolute volume.
The clearest structural shift continues to be the accelerating move away from internal combustion engines. Petrol registrations fell 7.1 per cent year-on-year, while diesel declined 2.2 per cent. By contrast, electrified powertrains continued to gain ground across all segments.
Hybrid electric vehicles rose 1.8 per cent, while plug-in hybrids jumped 23.9 per cent, lifting their market share to 13.8 per cent. Battery electric vehicles recorded the strongest growth, surging 34.2 per cent to take 27.3 per cent of the market — the highest level seen so far in 2026.
The gains reflect a combination of factors, including expanded model availability, sustained price competition among manufacturers, and continued discounting in the electric segment. Government support measures, including the Electric Car Grant, have also played a role in supporting demand, alongside broader cost-of-living and geopolitical pressures influencing consumer behaviour.
However, despite the momentum, industry data highlights a growing gap between market performance and regulatory ambition. Year-to-date BEV share stands at 23.9 per cent, significantly below the 33 per cent required under the 2026 mandate.
That shortfall is becoming increasingly significant for manufacturers, who face rising compliance costs as they attempt to align product mix with regulatory targets. While flexibilities within the framework may ease immediate pressure, the divergence between policy goals and consumer uptake is widening.
Longer-term government ambitions set out in the seventh Carbon Budget envisage electric vehicles accounting for up to 95 per cent of new car and van sales by 2030. Industry figures argue that such a trajectory would require a substantial scaling-up of fiscal incentives, infrastructure investment and regulatory clarity, warning that without further support the transition risks slowing.
For now, the market remains caught between two forces: strong consumer appetite for new vehicles — particularly electrified models — and the growing structural challenge of meeting legally binding decarbonisation targets at pace.
Mike Hawes, SMMT Chief Executive, said, “Britain’s car buyers are responding to a market offering more choice than ever, from both new and familiar brands, resulting in a robust May. The EV transition is progressing, but consumer uptake still lags behind even today’s targets, let alone the ambition set out in the latest Carbon Budget.
While industry shares the long-term ambition, the pathway to Net Zero must be credible. It cannot come at the cost of lost competitiveness and deindustrialisation. A review of the transition is now urgent to ensure ambition matches market realities and we have a sustainable path to road transport decarbonisation.”
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