UK Passenger Car Sales Rise 11.7% in July 2026 as EV Demand Surges

The United Kingdom passenger car market delivered a strong performance in July 2026, with registrations increasing 11.7% year-on-year to 156,571 units, representing the strongest July result since the pre-pandemic year of 2019. According to data released by the Society of Motor Manufacturers and Traders (SMMT) on August 5, registrations during the January-July period reached 1,294,499 units, up 9.5% compared with the same period a year earlier. Electrified vehicle demand rebounded significantly following a subdued July 2025, supported by broader model availability, aggressive manufacturer discounts and government incentives.

Leading Automakers Report Mixed Sales Performance

Among the major manufacturers, Volkswagen AG remained the market leader with sales rising 4.5% to 14,054 units, representing a 9.0% market share. Kia Corp recorded a modest 0.6% increase to 9,086 units, while Audi AG experienced a slight 1.0% decline to 8,652 units. BMW AG posted a 2.1% increase to 8,258 units, whereas Ford Motor Co registered a 15.5% decline to 7,699 units. Toyota, the leading Japanese carmaker, expanded sales by 16.5% to 6,653 units.

Chinese automotive brands continued gaining momentum in the market. MG recorded a 27.8% increase to 7,203 units, BYD more than doubled sales with a 107.4% rise to 6,603 units, while Jaecoo achieved the fastest growth among major brands, soaring 187.3% to 5,502 units during the month.

Best-Selling Passenger Cars in July 2026

The strongest-selling passenger vehicles reflected continued consumer preference for compact SUVs and crossovers across multiple manufacturers.

Top-Selling Passenger Cars in the UK – July 2026

Electrified Vehicles Continue Expanding Market Share

Battery-electric vehicles remained the fastest-growing powertrain category during July. BEV registrations increased 44.5% year-on-year to 43,106 units, accounting for 27.5% of total registrations. Hybrid electric vehicles climbed 11.6% to 20,711 units with a 13.2% share, while plug-in hybrid vehicles advanced 33.6% to 23,359 units, representing 14.9% of the market. By contrast, gasoline-powered vehicle registrations declined 5.2% to 62,799 units, while diesel-powered vehicles fell 17.7% to 6,596 units.

Private, Fleet and Commercial Registrations Increase

Private customer registrations increased 12.6% to 58,137 units, accounting for 37.1% of the market. Fleet registrations rose 9.5% to 93,734 units, representing 59.9% of total registrations, while business purchases surged 61.3% to 4,700 units with a 3.0% market share. Commercial vehicle demand also strengthened, with vans up to 3.5 tonnes increasing 22.0% to 28,578 units and trucks between 3.5 and 6.0 tonnes rising 104.4% to 1,633 units.

SMMT Calls for Regulatory Reform

Mike Hawes, CEO of SMMT, stated that July's record EV performance reflected the industry's substantial investment in zero-emission mobility. However, he warned that manufacturers could not continue absorbing billions in EV discounts to maintain demand and avoid regulatory penalties. Hawes emphasized that while the industry's commitment to decarbonisation remains strong, long-term business viability and future investment require urgent regulatory reform to support a sustainable transition as consumer demand continues to evolve.

Frequently Asked Questions

How did the UK passenger car market perform in July 2026?
The UK passenger car market recorded a strong recovery in July 2026, with registrations rising 11.7% year-on-year to 156,571 units, marking the best July performance since 2019. Growth was supported by increasing consumer demand, expanding electrified vehicle availability, manufacturer incentives and broader product choice. Year-to-date registrations also improved, reaching 1,294,499 units during the first seven months of the year, representing a 9.5% increase over the same period in 2025.

Which vehicle powertrains recorded the strongest growth?
Battery-electric vehicles posted the strongest growth, with registrations increasing 44.5% to 43,106 units and capturing 27.5% of the market. Plug-in hybrid vehicles rose 33.6%, while hybrid electric vehicles gained 11.6%. In contrast, gasoline and diesel vehicle registrations both declined compared with July 2025, highlighting the continued shift toward electrified mobility supported by incentives, wider model availability and manufacturer discounting.