EVs Lift the UK Car Market

· Automobile team
The UK new-car market delivered its strongest July since before the pandemic, helped by rapid growth in electric and hybrid registrations.
According to the Society of Motor Manufacturers and Traders, 156,571 new cars were registered in July 2026, up 11.7% compared with the same month last year. That was also the eighth consecutive month of year-on-year growth.
The result brought the market close to July 2019, when 157,580 cars were registered, showing how far demand has recovered from the disruption of the early 2020s.
Electric Cars Led the Growth
Battery-electric vehicles were the standout performers. A total of 43,106 new EVs were registered during July, an increase of 44.5% year on year. Their share of the market reached 27.5%, compared with 21.3% in July 2025.
Government support and manufacturer discounts have helped encourage demand. The UK Electric Car Grant offers eligible buyers support worth roughly €1,746 or €4,364, depending on the vehicle category and level of assistance available.
The SMMT also pointed to the wider choice of electric models as another reason buyers are becoming more willing to switch.
Hybrids Continued to Gain Ground
Plug-in hybrids also recorded strong growth. Registrations increased by 33.6% to 23,359 vehicles, giving them a 14.9% market share.
Conventional hybrids performed more steadily, rising 11.6% to 20,711 registrations and accounting for 13.2% of the market.
Taken together, battery-electric, plug-in hybrid and hybrid models represented more than half of all new registrations in July.
That makes the month especially significant: electrified powertrains are no longer a niche part of the UK market but a central part of mainstream buying.
Petrol Remains Number One — For Now
Petrol cars are still the single largest category, but their position is weakening. Registrations fell by 5.2%, from 66,271 in July 2025 to 62,799 this year. Their market share dropped sharply from 47.3% to 40.1%.
Diesel declined even faster. Only 6,596 diesel cars were registered during the month, down 17.7% year on year and representing just 4.2% of the market.
The shift shows how quickly buyers are moving toward partially or fully electrified alternatives.
Private Buyers Are Returning
Growth was not limited to company fleets. Private registrations increased by 12.6% to 58,137 vehicles, while fleet demand rose 9.5% to 93,734. Fleet buyers still accounted for 59.9% of July registrations, but stronger private demand is an encouraging sign for the wider market.
Business registrations also rose sharply, although from a much smaller base.
Ford Puma Stayed on Top
The Ford Puma was July’s best-selling new car, with 3,531 registrations. It was followed by the Nissan Qashqai with 3,224 and the Kia Sportage with 3,205.
Among electric models, the Renault 5 led the way with 1,805 registrations. Chinese brand Jaecoo also made a strong impression, placing both the Jaecoo 5 and Jaecoo 7 inside the monthly top 10.
The EV Target Is Still a Challenge
Despite the strong July result, the industry remains cautious. Battery-electric vehicles have taken 25.3% of the UK market so far in 2026, while the official zero-emission vehicle mandate sets a 33% target for the year.
Manufacturers have used substantial discounts to stimulate demand, and the SMMT has warned that relying heavily on price reductions may not be sustainable indefinitely.
July showed that the UK’s transition toward electrified cars is accelerating. EVs and hybrids are gaining rapidly, petrol is losing share, and private buyers are returning. The next challenge is maintaining that momentum without depending on ever-larger incentives and discounts.