UK new car sales are forecast to hit nearly 2.1 million units in 2026, according to the Society of Motor Manufacturers and Traders (SMMT). This optimistic projection comes despite a lower expected share of zero-emission vehicles, attributed to weaker demand in the first quarter of the year.
The SMMT revised its sales outlook upward from approximately 2.05 million units, indicating a rebound in consumer confidence and a healthy appetite for new vehicles in Britain. This positive trend emerges even amid global uncertainties, including tensions related to the ongoing conflict in Iran.
New car: April Sales Surge
In a reflection of this recovery, new car registrations in the UK surged by 24 per cent in April compared to the same month last year, totalling 149,247 units. This significant increase is a marked improvement from a notably weak April in the previous year.
Zero-Emission Vehicle Forecast Adjusted
Despite the overall positive outlook, the SMMT has adjusted its forecast for zero-emission vehicles, reducing the expected share from 28.5 per cent to 26.8 per cent for 2026. The anticipated boost to electric vehicle interest, spurred by rising fuel prices, may be countered by ongoing concerns about inflation, rising energy costs, and the financial pressures facing households.
Looking Ahead to 2027
The SMMT is optimistic about the future, projecting that the UK’s new car market could grow further, reaching 2.12 million units by 2027. They expect that battery electric vehicles will account for 32 per cent of registrations by then, although this is still below the mandated targets for zero-emission vehicles.
Calls for Policy Review
Mike Hawes, the CEO of the SMMT, has urged for a reassessment of the green transition policies. He warned that the rising costs of compliance could restrict consumer choices, hinder overall decarbonisation efforts, and threaten the competitiveness of the UK automotive sector. This, in turn, could diminish Britain’s appeal as a key market and manufacturing hub for vehicles.
Tesla’s Growing Presence
In a notable development within the electric vehicle sector, Tesla reported a remarkable 62 per cent increase in UK sales year-on-year for April, with 831 units sold. This growth aligns with similar findings from New Automotive, underscoring the expanding footprint of electric vehicles in the market.
