UK new car registrations back at pre-Covid levels as EV demand accelerates
By Benjamin Chiou
Date: Wednesday 05 Aug 2026
(Sharecast News) - UK new car registrations increased sharply in July, recording their strongest performance for the month since 2019 as demand for electric vehicles surged, according to industry figures released on Wednesday.
The Society of Motor Manufacturers and Traders said registrations rose 11.7% year-on-year to 156,571 units, marking an eighth consecutive month of growth.
Private buyer demand increased 12.6%, while fleet registrations were up 9.5%, while the lower-volume business segment was up 61.3%.
Battery electric vehicle registrations jumped 44.5% and reached record volumes in July, giving fully electric cars a 27.5% market share. Plug-in hybrid registrations rose 33.6%, taking a 14.9% share, while hybrid demand increased 11.6% to represent 13.2% of the market.
However, the SMMT said the industry remained on course to miss the government's electric vehicle mandate. Its latest outlook forecasts total new car registrations of 2.18m in 2026, with battery electric vehicles accounting for 27.4% of the market, compared with the mandate target of 33% by this year.
"July's record EV performance is a great achievement, reflecting industry's huge investment in zero emission mobility," said SMMT chief executive Mike Hawes.
"But that progress cannot be sustained if manufacturers continue haemorrhaging billions in EV discounts, distorting demand to avoid even steeper penalties."
He called for "urgent reform" of the regulations, warning that the current framework risked undermining UK competitiveness, investment and employment.
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