Two million electric car registered as market rebounds strongly from tax changes

Two million electric car registered as market rebounds strongly from tax changes

SMMT Driving the Motor Industry — 2026-05-05

Automotive Industry

The UK new car market grew by 24.0% to reach 149,247 registrations last month, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).

The increase reflects a rebound from an unusually weak April last year, when buyers pulled purchases forward to March to beat incoming vehicle tax increases, including the application of VED and the Expensive Car Supplement (ECS) on battery electric vehicles (BEVs).1 While April remains a traditionally low volume month, magnifying year-on-year variation, this was the best outturn since 2019’s 161,064 units.

Growth was recorded in all sectors, led by fleets, up 26.8% to 90,462 registrations. Private retail deliveries grew 20.2% to reach 56,116, while registrations by the smaller business sector rose 15.0% to 2,669.

Demand for petrol cars rose 8.2%, while diesel registrations fell -1.0%. Electrified cars accounted for more than half (53.2%) of the market for the second month this year.2 Plug-in hybrid (PHEV) registrations rose 46.4% to take a 13.8% market share, while hybrid electric vehicles (HEVs) increased 18.8%, securing 13.2% of new registrations.   

Marking a market milestone, April also saw the two millionth battery electric car registered (2,012,758)3, following bumper growth of 59.1% compared with last year. As a result, BEV uptake reached a robust 26.2% share of registrations in the month – an impressive performance albeit in a typically low volume month. Year to date, BEVs comprise 23.1% of the overall new car market, significantly short of the 33% required by the Zero Emission Vehicle Mandate, despite billions in manufacturer discounts and the introduction of the Electric Car Grant last year.

The latest industry outlook, also published today, shows improving confidence in overall market volumes but also reflects weaker expectations for EV demand. Total new car registrations in 2026 are now expected to rise 3.6% to 2.093 million, up from January’s 2.048 million outlook, but BEV share has been downgraded to 26.8%, from 28.5%, following an underperforming first quarter.

Looking ahead, the 2027 market is anticipated to reach 2.121 million units, 32.0% of them BEVs – leaving a persistent gap of around six percentage points against the mandate target. Energy, production and charging costs remain high and, as a result, demand has not grown as fast as assumed when the regulation was formulated.4 The Iran conflict adds further uncertainty, the full impact of which is yet to be seen, with rising interest in EVs potentially tempered by concern over inflation, higher energy prices and the resultant negative impact on the cost of living.

Other major international markets are revising their transition plans to reflect geopolitical and market realities. The UK similarly needs an urgent review of the transition to avoid being put in an uncompetitive position, undermining consumer choice, investment and growth.

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

"The mounting cost of compliance threatens to limit consumer choice, overall decarbonisation and the sector’s competitiveness so the need for a rapid review of the transition to align policy with market realities is unchanged, else Britain’s attractiveness as a vehicle market and manufacturing hub will be put at risk.", Mike Hawes, SMMT Chief Executive.