The latest sales data from the Society of Motor Manufacturers and Traders (SMMT) paints a positive picture for the United Kingdom’s automotive industry.
Still, the details indicate growing uncertainty about the pace of the electric vehicle transition.
In February, new car registrations reached 90,100, marking the best performance for the month in 22 years and the highest volume for February since 2004.
The 7.2% year-on-year increase reflects a recovery in consumer confidence, with much of this momentum driven by private retail buyers returning to showrooms after a period of cautious spending.
Fleet demand, which continues to dominate the market, accounted for nearly three-fifths of total sales and increased by 1.8%. This underscores the ongoing importance of business leasing and company vehicle replacement cycles.
However, there’s a noticeable decline in the uptake of pure battery electric vehicles (BEVs). The market share for battery EVs fell to 24.2%, down from 25.3% a year earlier, marking a second consecutive month of decline. Industry analysts suggest this trend reflects front-loaded demand from early 2025, when some consumers bought vehicles ahead of upcoming changes to vehicle taxation policy. While the absolute number of EV registrations increased by 2.8%, the slowing growth rate raises concerns about the pace of the UK’s transition to zero-emission vehicles.
In contrast, traditional powertrains are showing resilience. Registrations for petrol cars increased by 5.2%, while diesel sales declined by 3.8%, continuing the gradual long-term shift away from diesel without an immediate, rapid replacement by EVs. Plug-in hybrid vehicles stood out, with registrations surging 43.5%, suggesting buyers may prefer transitional technologies due to concerns about charging infrastructure, battery costs, and residual values.
Automotive executives argue that policy stability is critical if the government aims to maintain momentum toward the net-zero transport targets set by ministers, including Rachel Reeves.
Thus, the data presents a mixed picture: there is a strong overall recovery in the market, but a more cautious consumer attitude toward fully electric vehicles.
Mike Hawes, SMMT chief executive, said: “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.
“Manufacturers have committed monumental investment to drive demand but 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, said: “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.
“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.”
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