UK new car sales forecast to hit 2.1 million units in 2026

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, with the share of zero-emission vehicles lower than previously forecast after soft first-quarter demand.

The sales outlook for the industry has been upgraded from ​about 2.05 million units, signalling improving confidence and healthy demand for ​new cars in Britain despite risks from the Iran war.

The ⁠new car market last month grew 24 per cent from a year earlier to ​reach 149,247 registrations, data from the SMMT showed, reflecting a rebound from ​an unusually weak April last year.

The share of zero-emission vehicles in the 2026 sales forecast has been lowered to 26.8 per cent from 28.5 per cent earlier, as a boost to electric vehicle ​interest from higher fuel prices could be tempered by worries about inflation, ​energy costs, and pressure on household budgets, the SMMT said.

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.

SMMT CEO Mike Hawes called for a review of the green transition to align policy with market ​realities as the “mounting cost of compliance threatens to limit ​consumer choice, ⁠overall decarbonisation and the sector’s competitiveness,” which could hurt Britain’s attractiveness as a vehicle market and manufacturing hub.

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.