The UK new car market delivered a solid rebound in February, with registrations rising 7.2% year-on-year to 90,100 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
It marks the strongest February performance in 22 years. While February is traditionally a lower-volume and more volatile month ahead of the March numberplate change, the growth signals continued recovery across the sector.
Private Demand Drives Growth
A notable highlight was the recovery in private retail demand, which surged 17.6% to 35,227 units. Fleet registrations, still the dominant channel, edged up 1.8% and accounted for 59.4% of the total market. Meanwhile, the smaller business segment declined by 12.7%.
With March typically setting the tone for the year, February’s momentum provides a positive backdrop for what is historically the UK’s busiest registration month.
EV Market Share Slips Despite Volume Growth
Battery electric vehicles (BEVs) continued to grow in volume terms, rising 2.8% to 21,840 registrations. That equates to a 24.2% market share — nearly one in four new cars sold in February.
However, this was the second consecutive month in which BEV market share fell compared with the same period last year. The dip partly reflects a strong start to 2025, when buyers moved early to avoid April’s new tax rates, and follows a late-2024 surge to comply with the UK’s Zero Emission Vehicle Mandate.
With year-to-date BEV share at 22.0%, the industry remains well below the 33% share required under the 2026 mandate — raising pressure on manufacturers and policymakers alike.
Plug-in Hybrids Surge, Diesel Fades Further
Plug-in hybrid vehicles (PHEVs) posted the strongest growth of any segment, climbing 43.5% to secure an 11.6% share. Hybrid electric vehicles (HEVs) also increased, up 3.3% to 13.1%.
Petrol registrations rose 5.2%, but market share slipped to 46.5%. Diesel continued its long-term decline, falling 3.8% and now representing just 4.5% of the market.
The data highlights a continued shift toward electrified drivetrains, even as full EV momentum shows signs of uneven progress.
Policy Pressure and Market Uncertainty
Manufacturers have invested billions in electrification, launching new models and offering substantial discounts to stimulate demand. Support has also come from the government’s Electric Car Grant.
But industry leaders warn that market conditions have shifted significantly since regulatory targets were set. Planned changes — including a proposed pay-per-mile road pricing scheme for EVs (eVED) from 2028 — risk weakening buyer confidence just as adoption needs to accelerate.
According to SMMT Chief Executive Mike Hawes, March will be pivotal. With the sale of new pure petrol and diesel cars scheduled to end in less than four years, EV uptake must increase rapidly to stay on track.
March Plate Change: A Defining Moment
All eyes are now on the March “new plate” registrations, which traditionally account for a significant share of annual sales. For 2026 ZEV targets to remain credible, March will need to deliver a substantial uplift in EV adoption.
The UK market is clearly recovering — but the transition to zero-emission mobility remains finely balanced.
