A steady start to the year for new car registrations, industry must recognise mitigating factors says NFDA

“The new car market has started 2026 on a firm footing, with January registrations rising by 3.4%, providing a positive early indicator for the year ahead,” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, commenting on the latest Society of Motor Manufacturers and Traders (SMMT) new car registration figures.

In January, a total of 144,127 new cars were registered, an increase of 3.4% year on year. Registrations to private buyers rose by 4.5%, while fleet registrations also increased slightly by 1.6%.

Battery electric vehicles (BEVs) accounted for 29,654 registrations, representing a small 0.1% increase year on year and taking a 20.6% share of the market. Plug-in hybrid vehicles (PHEVs) recorded 18,557 registrations, up 12.9%, while hybrid electric vehicles (HEVs) registered 19,297 units, a 47.3% increase.

Petrol registrations declined by -1.9% to 68,757 units, while diesel fell by -8.8% to 7,862 units.

Sue Robinson added: “A strong start to the year bodes well for the months ahead, building on the 2 million in new vehicle sales in 2025. While some headlines, such as record low vehicle production, may generate negative sentiment for the industry, it is important to recognise the mitigating factors, including the JLR shutdown, that have impacted output, rather than a lack of stock available at dealerships or general poor manufacturing. Franchised dealers continue to be resilient and able to support customers as the new car market grows.

“The year ahead remains critical in ensuring the UK addresses key challenges, including policy clarity, consumer confidence and the pace of the transition to zero-emission vehicles.”