London, United Kingdom. British new car registrations are expected to rise to nearly 2.1 million units in 2026, the Society of Motor Manufacturers and Traders said this week, while lowering its forecast for the share of zero-emission vehicles after soft first-quarter demand.
Upgraded market outlook
The industry sales outlook for 2026 was raised from about 2.05 million units, signalling improving confidence and healthy demand for new cars in Britain despite risks from the Iran war.
April registrations rebound
The new car market grew 24 per cent in April from a year earlier to 149,247 registrations, SMMT data showed, reflecting a rebound from an unusually weak April last year.
Lower zero-emission share forecast
The share of zero-emission vehicles in the 2026 sales forecast was lowered to 26.8 per cent from 28.5 per cent previously. The SMMT said higher fuel prices could boost interest in electric vehicles, but that effect could be tempered by concerns about inflation, energy costs and pressure on household budgets.
The auto body expects the UK’s new car market to reach 2.12 million units in 2027, with battery electric vehicles accounting for 32 per cent of registrations, still about six percentage points below the zero-emission vehicle mandate. Zero-emission vehicles include battery electric vehicles, hydrogen fuel-cell vehicles, and other models that produce no tailpipe emissions.
Call for policy review
SMMT CEO Mike Hawes called for a review of the green transition to align policy with market realities, saying the “mounting cost of compliance threatens to limit consumer choice, overall decarbonisation and the sector’s competitiveness,” and could hurt Britain’s attractiveness as a vehicle market and manufacturing hub.
Tesla sales in April
Tesla’s UK new car sales rose 62 per cent year-on-year to 831 units in April, according to the SMMT. Data from New Automotive on Tuesday also showed a similar jump in Tesla’s UK numbers.
How do you expect changes in fuel prices and household budgets to affect demand for electric vehicles in the UK?