UK car market rebounds as two millionth EV hits the road

The UK new car market surged back to growth in April, with registrations rising 24.0% year-on-year to 149,247 units, according to figures from the Society of Motor Manufacturers and Traders.

The strong performance reflects a recovery from a weak April last year, when buyers brought purchases forward to avoid incoming tax changes, including Vehicle Excise Duty and the Expensive Car Supplement on electric vehicles. Despite April traditionally being a lower-volume month, the result marks the best performance for the period since 2019.

All sectors recorded gains, led by fleet registrations, which rose 26.8% to 90,462 units. Private retail demand increased 20.2% to 56,116 units, while business registrations climbed 15.0% to 2,669.

Demand for petrol vehicles rose 8.2%, while diesel declined slightly by 1.0%. Electrified vehicles continued to dominate, accounting for more than half (53.2%) of all new registrations.

Plug-in hybrids saw particularly strong growth, up 46.4% to take a 13.8% market share, while hybrid electric vehicles increased 18.8%, representing 13.2% of the market.

April also marked a major milestone for the UK market, with the two millionth battery electric vehicle registered, bringing the total to just over 2 million units.

Battery electric vehicle (BEV) demand rose sharply, up 59.1% year on year, giving the segment a 26.2% share of registrations in the month. However, year-to-date BEV share stands at 23.1%, still well below the 33% target set under the Zero Emission Vehicle mandate.

The latest industry outlook points to improving confidence in overall volumes, with total registrations in 2026 now forecast to reach 2.093 million units, up from earlier expectations.

However, EV adoption forecasts have been revised down. BEVs are now expected to account for 26.8% of the market this year, compared with a previous estimate of 28.5%, reflecting weaker-than-expected demand in the first quarter.

Looking ahead to 2027, registrations are forecast to reach 2.121 million units, with EVs making up 32.0% of the market, still short of mandated targets.

Industry leaders continue to highlight barriers to faster EV adoption, including high energy and production costs, as well as limited charging infrastructure. Broader geopolitical uncertainty and rising living costs are also weighing on consumer confidence.

Mike Hawes, Chief Executive of the SMMT, said the April rebound highlights the sensitivity of the market to fiscal policy.

“April’s rebound is welcome, but underlines just how significantly fiscal changes can influence the market,” he said. “Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate.”

He warned that the cost of meeting regulatory targets could impact competitiveness if policy does not adapt to market realities.

Meanwhile, James Hosking of AA Cars said the figures point to underlying resilience in the market, despite ongoing economic pressures.

“While March typically does the heavy lifting, sustained demand into April points to underlying resilience among buyers,” he said, adding that rising fuel costs are helping to drive increased interest in electric vehicles.

However, he noted that affordability remains a challenge.

“Higher borrowing costs and general household pressures mean many buyers are still weighing up whether to commit to a new vehicle or explore the used market instead,” he said. “We’re seeing that reflected in continued strong demand for used cars where buyers have more flexibility on price.”