The Society of Motor Manufacturers and Traders (SMMT) has reported a 3.5% growth in the new car market for January 2026. While the outlook predicts a 1.4% improvement for the year, battery electric vehicle (BEV) demand is underperforming relative to regulatory requirements.
Electrified Vehicle Trends
Plug-in hybrid (PHEV) registrations rose by nearly 50% in January. Conversely, BEVs saw a marginal 0.1% increase, with market share falling below 21%. Current projections suggest BEVs may reach 28.5% by year-end, which remains short of the 33% mandate target for 2026.
Challenges in the Van Sector
The new van market declined in January, influenced by a 57% drop in pickup demand following government tax changes for double cabs. Electric vans currently represent 10% of the market, compared to a mandate target of 24%. Growth has relied on manufacturer discounting and the Plug-in Van Grant, the future of which remains uncertain after April.
The SMMT notes that original transition assumptions have not materialised:
“The reality is that the assumptions underpinning the mandate’s creation have not materialised – and given the differing economic, political and industrial situation the sector now faces, a comprehensive review of the transition is needed, and urgently.”
Industry Action
The SMMT will host its Electrified event on 12 March 2026 to discuss steps for accelerating zero-emission mobility. Speakers include representatives from the Department for Transport, Volkswagen, and Ford of Britain. Tickets can be booked via the SMMT website.
