UK new car sales rise for seventh consecutive month – EY comments

Maria Bengtsson, EY UK & Ireland Mobility Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for June 2026:

“UK new car sales continued their strong recent momentum, rising for a seventh consecutive month in June, with an 11.4% year-on-year increase to 213,166 units. Given the range of volatile headwinds facing the UK economy including complex barriers to trade, regulatory challenges, geopolitical uncertainty and low consumer confidence, this consistent growth is a real bright spot.

“As has been the case so often in recent times, Battery Electric Vehicle (BEV) registrations once again provided the most significant contribution to UK new car sales growth, with a notable 35% year-on-year rise last month, resulting in a year-to-date market share of 30%, up slightly from 27.3% the previous month and marking the highest it has ever been. A number of cost-competitive Chinese models have been introduced to the UK market which has stimulated demand and, although market share remains below the 33% Zero Emissions Vehicle (ZEV) Mandate target, the latest data represents a further a step in the right direction.
 
“The SMMT is calling for an immediate review of the ZEV Mandate, highlighting that its regulatory targets are not aligned with real market demand, causing automakers to subsidise vehicles at levels which aren’t sustainable longer-term. While the BEV sales growth seen in recent months is a sign of encouraging progress, there is no doubt that increasing levels of production, and indeed sales, must be profitable in order for sustained progress to be feasible in the months and years ahead.
 
“Plug-in Hybrid Electric Vehicle (PHEV) registrations also rose substantially last month, with a 24.9% uptick, while hybrids saw 25.3% year-on-year growth. In line with the movements seen in May, both petrol (-4%) and diesel (-24.4%) sales fell year-on-year in June.”

Further retail and fleet sales growth a crucial source of support for automakers

Maria added: “Retail sales saw an extension to the momentum they have shown in recent months – encouraging news for the UK automotive industry amid challenging market conditions – with a 12.5% year-on-year rise in June. Meanwhile, fleet sales also grew by 10.5% year-on-year last month.

“As ever, despite the excellent momentum for UK new car sales so far this year, automakers must continue to prioritise forward planning, agility and stress testing in a consistently complex and challenging market.”