UK new car registrations surged 7.1% in May to the highest level since before the pandemic, with electric vehicles capturing over 27% of the market.

Some 160,662 units were registered last month, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), hitting the highest level since 2019, although still 12.6% down on pre-pandemic levels.

The growth was driven by a resurgent private market, where a rise of 17.2% countered the long-term trend of fleet-driven demand and weak consumer uptake.

The SMMT credited the consumer surge to aggressive manufacturer incentives from an unprecedented range of brands and a 6.4% increase in model choice – including a 25.6% uplift in BEV products year to date.

Fleet demand grew more modestly, rising 1.8% but still accounted for more than half (57.1%) of all registrations. The smaller business sector declined 18.8%, although in volume terms the drop was marginal (720 units).

The SMMT data shows traditional powertrains are still losing ground to electrified vehicles as “the gradual shift in consumer demand for new technologies continues to reshape the market”.

Registrations of petrol and diesel cars fell by 7.1% and 2.2% respectively.

Hybrid electric vehicle (HEV) uptake rose 1.8% and plug-in hybrid deliveries grew 23.9% to take a greater 13.8% market share.

Battery electric vehicle (BEV) uptake increased 34.2% to take 27.3% of the market, the highest recorded so far in 2026 and one of the strongest months on record outside the traditional December peak.

The league table for top-selling models was led by the Ford Puma followed by the Kia Sportage, Vauxhall Corsa and Jaecoo 7. For the year-to-date, the Puma and Sportage held their top spots but the Jaecoo 7 jumped to third and the Nissan Qashqai came in fourth.

The SMMT said the uplift in BEV demand reflects both expanding model choice and sustained competition, particularly in the electric vehicle market where “substantial” manufacturer discounting continues to play a significant role in driving uptake, along with government support, including the Electric Car Grant, and rising consumer interest amid volatile fuel prices due to the Middle East war.

However, the trade body said the transition to zero-emission mobility remains well behind the mandated trajectory under the ZEV mandate. Year-to-date, BEVs account for 23.9% of the market; still short of the overarching 33% target under the ZEV mandate.

The SMMT said “this widening gap between mandated targets and consumer demand is increasing pressure on manufacturers which must try to absorb the rising costs of compliance”.

And the business group warned that government ambitions for EVs to account for 95% of the new UK car and van market by 2030, as set out in the seventh Carbon Budget, published this week, are well beyond the targets set by the mandate of 80% for cars and 70% for vans. It’s called again for a holistic review of the mandate.

Mike Hawes, SMMT chief executive, said: “A review of the transition is now urgent to ensure ambition matches market realities and we have a sustainable path to road transport decarbonisation.”

MPs on the Business and Trade Committee (BTC) have also urged the Government to bring forward the planned review of the ZEV mandate as they warn of an “existential risk” to the UK’s automotive sector.

But the Energy & Climate Intelligence Unit (ECIU) said claims that the car industry was mandated to hit 33% new EV sales in 2026 were false.

The independent UK think-tank, which provides facts for public debate on energy and climate change, pointed out that flexibilities in the ZEV mandate, such as those that allow credits to be earned through the sale of petrol, diesel and hybrids vehicles that emit comparatively low levels of CO2, have the effect of lowering the car industry’s headline EV sales target.

It has been calculated by New Automotive that this means the real EV sales target for the car industry 2026 is 24.6%, rather than 33%. With market share for the year so far at 24%, and sales in May at 27%, the car industry is on course to comply with its EV sales target for 2026, just as it did in 2024 and 2025; the first two years of the mandate.

Colin Walker, head of transport at the ECIU, said: “Calls from parts of the industry to weaken the mandate could see prices bounce back up, leaving families stuck paying more at the pump, and slow the supply of EVs to the second hand market where most of us buy our cars. Sticking with the targets will not only help with the cost of living, it will improve the UK’s energy security.”

Steady, underlying momentum behind the EV transition

Industry reaction centred around the robust BEV demand and the new car sector’s continued resilience despite ongoing economic pressures.

Nick Williams, transport managing director at Lloyds Banking Group, said May’s figures point to a steady, underlying momentum behind the EV transition.

“With pump prices remaining elevated and the running cost gap between electric and petrol widening, more drivers are doing the maths and concluding that electric makes sense – not as a long-term aspiration, but as their next car.

“What’s striking is how quickly the affordability picture has changed. Average used EV prices are now generally lower than those of used petrol cars, and the used market is growing fast – battery electric transactions were up more than 30% in the first quarter alone. For many households, a three-year-old EV is now genuinely competitive on price, and the running-cost savings then start from day one.”

Williams also spotlighted the shift in BEV confidence.

“Assumptions around battery longevity and charging points are changing fast, lifting one of the last meaningful barriers to mainstream uptake. Sustaining this through the rest of 2026 will depend on continued investment in charging, policy stability and ensuring the value case stays clear for both households and fleets.”

Melanie Lane, CEO at EV charging provider Pod, said surging interest linked to macro shocks earlier in the year was now materialising into “real consumer demand” for BEVs.

Opposing the SMMT’s calls for a ZEV mandate rethink, Lane continued: “To maintain this pace, though, policy stability matters. Clear, consistent signals from government give buyers the confidence to commit and give industry the certainty to invest. Without that, we risk stalling a transition that’s hitting its stride.”

And Tanya Sinclair, CEO, Electric Vehicles UK, said: “Why are we told that the public isn’t ready, and the demand isn’t there? 27% says otherwise. This is the mainstream choosing electric on its own terms, because it’s cheaper to run and better to own. Instead of scare-mongering about readiness, let’s all ensure supply, charging and policy keep pace with a market that’s going electric at pace.”

But Jon Lawes, managing director at Novuna Vehicle Solutions, warned that BEV demand remains highly sensitive to price, running costs and wider household pressures, meaning growth is “still not yet broad-based”.

“Fleet and salary sacrifice continue to do much of the heavy lifting because the economics are clearer for businesses and company car drivers. Uncertainty around the future tax environment, including pay-per-mile charging from 2028, risks adding another layer of hesitation at precisely the point the market needs reassurance.”

Deloitte highlighted the strong growth in the new car market, which reflects a resilience in consumer spending despite economic headwinds, with signs that competitive pricing is attracting new buyers.

Jamie Hamilton, automotive partner and head of electric vehicles, continued: “The number of consumers expecting fuel prices to be higher next month remains well above the long-term average, with three-quarters of consumers anticipating a rise in the cost compared to half just two months ago. This will continue to play a role in influencing consumer purchasing decisions, whether it’s the affordability of petrol and diesel vehicles, or the attractiveness of going all-electric.”

EY UK & Ireland drew attention to the continuing retail and fleet sales growth.

Maria Bengtsson, mobility leader, said: “UK automakers should undoubtedly be proud of what they have achieved over the last few months, but it is imperative that they remain agile and vigilant. Ongoing geopolitical disruption has significant ramifications for fuel prices, trade relationships and supply chains, and although retail sales have been strong it is unclear whether the recent growth trend is sustainable. Compelling price propositions where feasible, diversifying product portfolios and carefully navigating the complex regulatory landscape will continue to be pivotal going forward.”

Bengtsson also said reports that vehicles manufactured in the UK could qualify for ‘Made in Europe’ subsidies under the EU’s proposed Industrial Accelerator Act (IAA) have provided some encouragement to automakers in the UK, and could support growth in the future.

“If confirmed, this would be welcome news amid supply chain volatility, which could increasingly weigh on manufacturing if the Middle East conflict persists.”