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UK car sales hit best February since 2004 — but EV demand is now a third behind the 2026 target
5 March 2026
2 mins read

UK car sales hit best February since 2004 — but EV demand is now a third behind the 2026 target

London, March 5, 2026, 13:03 GMT

  • UK new car registrations climbed 7.2% in February, reaching 90,100—marking the strongest February result in 22 years.
  • Battery-electric vehicles accounted for 24.2% of registrations, pushing the year-to-date share close to 22%. That’s still shy of the 33% mandate set for 2026.
  • Tesla’s UK registrations tumbled 37% in February, SMMT figures show, as BYD registered an 83% surge.

UK new car registrations climbed 7.2% in February, hitting 90,100 units—marking the most active February since 2004, according to the Society of Motor Manufacturers and Traders (SMMT) on Thursday. Battery electric vehicles (BEVs) accounted for 24.2% of those registrations, though the year-to-date figure sits around 22%, trailing the 33% required by 2026. “EV uptake must accelerate rapidly,” said SMMT chief executive Mike Hawes. SMMT

The gap is significant because the UK’s Zero Emission Vehicle (ZEV) mandate requires each automaker to hit yearly zero-emission registration targets, with the share for cars climbing to 33% in 2026. Under these rules, companies can bank, borrow, or trade allowances, though if they still fall short—even after using those options—they face a compliance payment of £12,000 per car starting in 2025, according to government documents.

March is shaping up as a critical month for the industry, with many buyers delaying purchases until new number plates hit the market. According to Autocar, the SMMT labeled next month “pivotal.” Manufacturers have already funneled cash into fresh models and more aggressive discounts, counting on government incentives like the Electric Car Grant for support. But the SMMT also highlighted the looming threat from the proposed pay-per-mile EV tax—eVED—targeted for 2028. Autocar

Plug-in hybrids (PHEVs)—vehicles featuring both a rechargeable battery and a fuel engine—surged 43.5% in February, reaching 10,438 registrations, according to SMMT data. Hybrids (HEVs) that aren’t plug-in models captured 13.1% of the market. Petrol cars led with 46.5%, while diesel numbers slipped to 4.5%.

It’s a brand-by-brand race. Tesla’s UK registrations slumped 37% in February, dropping to 2,422 vehicles, according to SMMT figures. BYD, meanwhile, posted an 83% jump but still lagged Tesla in total numbers. A Tesla spokesperson argued that the monthly registration data “not an accurate reflection of sales or orders taken,” pointing out that orders and reservations in January and February “far exceed their respective months in 2025 and 2024″—though many of those vehicles haven’t yet been registered or delivered. Reuters

Ben Nelmes, who heads transport research group New AutoMotive, called the quarter share a sign of progress—even with the mandate just ahead. “As we enter yet another fossil fuel price crisis, every electric vehicle is yet another step on the road to energy independence,” he said. Auto Express

February’s registration data showed just how sharply the UK market is tilting—and who’s making the sales charts. Ford’s Puma topped last month’s list, trailed by the Kia Sportage and Mini Cooper, while Tesla’s Model 3 and Jaecoo 7 filled out the top five, according to Car Dealer Magazine and SMMT figures. Looking at the year so far, the Jaecoo 7 is holding third place, and BYD’s Seal U slots in at number nine.

BusinessGreen flagged the same key stat: BEVs made up one in four new registrations in February. The outlet also highlighted that over a third of new cars sold now are plug-ins, suggesting the market is outpacing the ZEV mandate targets.

Still, things remain up in the air over the coming weeks. Carwow pointed out that February, with fewer days on the calendar, tends to exaggerate shifts in market share and called March a critical month. The sector is leaning hard on incentives and government backing, but looming issues—like the proposed pay-per-mile charge for EVs set for 2028—are making buyers uneasy. Without a pickup in March sales, automakers might have to slash prices even more to move EVs, or else get hit with compliance penalties tied to the mandate.

The UK market’s bouncing back in terms of total volumes, though the EV shift remains uneven. March registration numbers are up next—a crucial gauge of whether individual buyers will join fleets in going electric.

Stock Market Today

  • Credit Card Stocks Q1 Earnings: Mastercard Leads with Strong Revenue Beat
    May 17, 2026, 5:30 PM EDT. Mastercard (NYSE:MA) posted a strong Q1, with revenues of $8.40 billion, up 15.8% year on year, beating analysts' forecasts by 1.8%. Despite this, its shares fell 6.5% to $491.11 amid a challenging market. Other credit card companies showed mixed results; Bread Financial (NYSE:BFH) led with a 4.9% revenue increase and a 2.3% beat on expectations, though shares dropped 9.7% to $83.43. Meanwhile, American Express (NYSE:AXP) reported slower growth, missing revenue estimates by 5.1% with $17.66 billion in revenues. Overall, the sector saw average revenue in line with forecasts but experienced a 6.7% average share price decline post-earnings, reflecting concerns over regulatory pressures and competition.

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