UK passenger car sales January 2026 rise 3.4% as electrified vehicles reshape market

UK passenger car sales January 2026 delivered a solid start to the year, with registrations rising 3.4% year on year to 144,127 units. According to figures released by the Society of Motor Manufacturers and Traders on February 5, this marked the best January performance since the pre-pandemic period of 2020, reflecting improving supply conditions and evolving buyer preferences.

Brand performance and new market entrants

Performance among major manufacturers was mixed. Volkswagen registrations declined 7.6% to 12,539 units, while Kia volumes slipped 7.7% to 9,983 units. BMW sales fell 12.6% to 8,099 units, contrasting with Ford, which recorded a 13.6% increase to 7,540 units. Audi also posted strong growth, with sales up 17.1% to 7,534 units.

Rising influence of Chinese and Japanese brands

Among Japanese manufacturers, Nissan volumes dropped 16.7% to 5,942 units. In contrast, Chery’s Jaecoo brand recorded a sharp increase of 569.9% to 4,850 units, supported by new model launches. Other Chinese brands also contributed positively to overall new vehicle registrations, highlighting the impact of recent market entrants. The strongest-selling models during the month were the Kia Sportage with 4,675 units, followed by the Jaecoo 7 at 4,059 units. The Ford Puma recorded 3,715 registrations, ahead of the Nissan Qashqai at 2,995 units and the Vauxhall Corsa with 2,902 units.

Powertrain trends and buyer mix

Compared with the same month last year, petrol car sales declined 1.9% to 68,757 units, accounting for 47.7% of the market. Battery electric vehicle registrations edged up 0.1% to 29,654 units, representing a 20.6% share. Hybrid electric vehicles increased 4.8% to 19,297 units, while plug-in hybrids surged 47.3% to 18,557 units. Diesel volumes continued to fall, down 8.8% to 7,862 units. Despite the slight increase in BEV volumes, their market share was the lowest since April 2025. This reflected a pull-forward effect seen in January last year, when buyers accelerated purchases ahead of new tax rates introduced in April, along with strong manufacturer-driven registrations at the end of 2025 to meet regulatory targets. Private car registrations rose 4.5% to 52,397 units, while fleet sales increased 1.6% to 88,269 units. Business registrations recorded the fastest growth, climbing 46.5% to 3,461 units, albeit from a smaller base. In the light commercial segment, van registrations up to 3.5 tons declined 7.8% to 17,562 units. Truck sales between 3.5 and 6.0 tons moved in the opposite direction, increasing 10.8% to 676 units. SMMT’s latest outlook projects new car registrations to grow 1.4% in 2026 to 2.048 million units. A broader model range, improved driving range, and the reintroduction of government support through the Electric Car Grant are expected to support battery electric vehicle uptake, with BEVs forecast to account for 28.5% of the market over the year.