A disquieting month for the UK’s new car market
November’s new car data offers a reminder that the road to net zero is anything but straightforward. Overall registrations slipped by -1.6%, reflecting not just a dip in private buyer enthusiasm but a market grappling with a challenging economic backdrop. Electrified vehicles dominated popular demand, making up more than half of all registrations for a third month, while one in four buyers went zero emission. Despite this, ZEV demand rose just 3.6% – the slowest growth in almost two years – which, coming ahead of new Autumn Budget taxes on electric cars, should be seen as a wake-up call that sustained growth is far from guaranteed.
Other measures will help – additional money for the Electric Car Grant, an uplift in the VED Expensive Car Supplement threshold, more funding for infrastructure rollout – but their impact will be neutered by plans to introduce a “pence per mile” electric Vehicle Excise Duty even if it will be from 2028. At such a delicate time in the market’s transition, this sends the wrong signal to consumers, putting ambitions in doubt and undermining the vast sums invested by the industry and government.
The UK is moving faster than any other major market to get to zero emission mobility, and such rapid transition requires policies which incentivise, not penalise, drivers trying to do the right thing. With mandated targets ratcheting up steeply, we urge government to do everything in its power to keep the transition on track, support a healthy market and safeguard the UK’s investment appeal.
The van market faces similar challenges amid weak business confidence to invest in fleet renewal. Electric van uptake is still rising but not at the level needed, with year to date market share little more than half the 16% mandated by government. The recently announced Depot Charging Scheme and the extension of the Plug-in Van Grant for another year are welcome, but every lever – including fast-tracked depot grid connections and rapid rollout of van-suitable public chargers – must be pulled to ensure the market can decarbonise in line with regulation.
The UK is at a sliding doors moment in the transition and decisions made now, and in 2026, will shape the future. The automotive industry is renowned for its pioneering ambition but it is essential that such ambitions clearly reflect reality, and SMMT Electrified next Spring will provide a key opportunity for the sector to come together and discuss where the transition stands. With a speaker line-up including Lisa Brankin, chair and MD of Ford of Britain and Ireland; Andrew Miller, CEO of Benchmark Mineral Intelligence; and more big names yet to be announced, this event is not to be missed. Secure your place here.