EV market stalls in January but growth ‘is on the way’

Registrations of new electric cars stalled last month, registering a mere 0.1% increase over the previous year.

The near-static sales figures came after months of strong growth for EVs and as the overall new car market grew 1.4% year-on-year.

As a result, EVs’ market share fell to 20.6% – the lowest since April 2025 – according to the Society of Motor Manufacturers and Traders (SMMT).

Overall registrations were also sharply down on the previous month after EVs enjoyed a bumper December, dropping from 47,139 in December 2025 to 29,645 in January 2026.

However, the SMMT said that this year’s figures needed to be taken in the context of strong performance last January, when many buyers sought to get ahead of incoming tax changes, and December’s record-breaking figures.

It also sounded a cautiously optimistic note for the rest of the year, saying that January’s figures were typically lower and “not necessarily indicative of the full year trend”.

It noted: “Increasing model choice, improved range and the re-introduction of government support through the Electric Car Grant has helped strengthen the 2026 outlook for BEV uptake, with these vehicles now expected to comprise 28.5% of the market.

“Although this would represent tangible progress on 2025, it would still be significantly short of the 33% mandated target for the year.”

SMMT chief executive Mike Hawes once again called for a rethink of ZEV Mandate. He said “Despite a January dip in EV market share, the signs point to growth by the end of the year.

“The pace of the transition, however, may be slowing and is certainly behind mandated targets. With sales of new pure petrol and diesel cars planned to end in less than four years, there needs to be a comprehensive review of the transition now, to ensure ambition can match reality.”

Drivers’ body EVA England said that costs remained the biggest barrier to more rapid EV adoption.

Vicky Edmonds, CEO of EVA England, said: “Despite strong growth in EV adoption, with nearly one in four new cars sold last year being electric, the latest figures reinforce the need to continue to do more to encourage drivers to switch.

“Our research shows upfront cost, the high cost of public charging, and people’s experiences are chargepoints remain major barriers: 60% of EV drivers saying their vehicle was more expensive to buy than a petrol or diesel vehicle, and half of those without driveways saying they are finding their cars more expensive to run.

“While we welcome the Government’s initiatives to tackle these issues, it is clear that further urgent action is needed. Without stronger signals to drivers that these are the right cars to buy, and better-targeted incentives at the right moment, many drivers will continue to be priced out of switching to electric.”

Melaine Lane, CEO of charger manufacturer Pod said that contradictory messaging from the Government was not helping the transition. She commented:”A slower uptake on BEV registrations in January shows how quickly momentum can stall when confidence is knocked by mixed messages on policy and costs, despite growing interest and strong underlying demand.

“The DfT’s recent Get That Electric Feeling campaign shows drivers can save up to £1,400 a year on fuel and running costs – but government must back these savings with stable, joined-up policy and action to lower energy costs to get back on a strong trajectory and convert interest into uptake at scale.”