Despite Market Growth, EV Sales Stagnate
January is often a slow month for the automotive industry, but January 2026 revealed surprising growth in car sales. A total of 144,127 new cars were sold in the UK, marking an increase from 139,345 in January 2025. This was the highest January sales figure since 2020, demonstrating a potential upward trend in the market.
Electric Vehicle Sales Stagnate Amid Growth in Conventional Cars
Despite the overall growth in car sales, the electric vehicle (EV) market faced challenges. In January 2026, just 29,654 electric vehicles were sold, a marginal increase of only 20 units from the previous year. This translates to a mere 0.1% rise, indicating stagnation in the EV sector.
Market Share Decline
While total car sales increased, the market share for electric vehicles declined from 21.3% to 20.6%. This shift highlights that, even with rising overall sales, EVs are not gaining the expected traction. The goal set by the Zero Emission Vehicle (ZEV) mandate for 2026 is for one out of every three cars sold to be electric.
- January 2026 car sales: 144,127 units
- January 2025 car sales: 139,345 units
- Electric vehicles sold: 29,654 units
- Percentage increase in EV sales: 0.1%
- EV market share: 20.6%
- Target for ZEV mandate: 33%
Factors Affecting EV Adoption
Several factors may be influencing the stagnation of EV sales. Although electrified vehicle types, such as plug-in hybrids, saw significant increases—up 47% with 18,557 units sold—pure electric vehicles remained consistently low. Current incentives, including government grants and discounts, have not been sufficient to encourage widespread adoption.
SMMT Chief Executive Mike Hawes noted the need for a comprehensive review of the transition to electric vehicles. He acknowledged that, while the new car market is showing signs of recovery, it remains behind the mandated targets for decarbonization.
Looking Ahead
As the UK approaches the planned end of new petrol and diesel car sales in less than four years, the pressures for increased EV adoption are mounting. Future strategies may include enhanced charging infrastructure and potential tax incentives, which could play a crucial role in driving sales.
For now, potential buyers can take advantage of significant discounts, such as over £15,000 off selected electric models like the Volvo EX90, as manufacturers strive to stimulate demand despite a challenging market landscape.
