Last month was the best February for new car sales in the UK in 22 years, according to the latest industry figures, which show huge yearly growth in the sector off the back of a healthy uptick in retail registrations.
The Society of Motor Manufacturers and Traders (SMMT) says 90,100 cars were registered in the shortest month of the year, a significant 7.2% increase over 2025 – driven mainly by a 17.6% increase in sales to private buyers, who took home more than 35,000 cars.
There was a smaller, 2.8% increase in fleet sales, making up well over half of the market, which more than offset a 12.7% downturn in the much lower-volume business segment.
However, while the market grew overall, February marked the second month of decline for the market share of electric cars, which accounted for just 24.2% of registrations, compared with just over a quarter last year – despite a 2.8% uptick in registrations.
The SMMT attributes that dip, in part, to a surge of EV sales in the run-up to the imposition of new tax rates last April and notes that manufacturers were pushing EVs hard in the final months of 2025 in a bid to comply with the Zero-Emission Vehicle (ZEV) mandate.
The trade body also says that because February is several days shorter than other months, volumes are inherently lower and so any changes tend to be exaggerated.
Despite green shoots of a long-awaited market recovery in February, the SMMT notes that volumes are traditionally stifled as buyers tend to wait for the March numberplate change to take home their new cars, and it says next month’s figures will be “pivotal” – particularly for electric cars.
It said: “With year-to-date BEV market share at 22.0%, two thirds of the 33% share mandated for 2026, March is set to be a pivotal month. Manufacturers have already invested billions in new models and discounts to drive demand, now with support from government’s Electric Car Grant, but circumstances have changed beyond expectation since the regulation was set.
“A holistic review of the transition is needed – and must be completed urgently as buyer confidence is anticipated to be weakened further amid plans to introduce a pay-per-mile tax for EVs (eVED) from 2028.”
While electric car growth tailed off in February, plug-in hybrid sales soared by 43.5% to give them a record 11.6% share of the market, and hybrids took 13.1%. That came at the expense of pure-petrol cars, which dipped to 46.5% despite a small uptick in demand. Diesel’s decline continued, with sales reduced by 3.8% for a market share of just 4.5%.
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