Finance
UK January new car sales rise to best in six years, industry data shows
Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Quick Summary
UK car sales rose 3.4% in January, driven by private purchases, with 144,127 units sold, according to industry data.
UK New Car Sales Hit Six-Year High with 3.4% Increase in January
UK New Car Market Overview
Feb 5 (Reuters) - British new car sales rose 3.4% in January from a year earlier to their highest level in six years, data from the Society of Motor Manufacturers and Traders showed, pointing to stabilising demand as private purchases picked up and buyers shifted to greener models.
Electric Vehicle Market Trends
New car registrations rose to 144,127 units for the month, data on Thursday showed.
Sales Performance of Major Brands
Electric vehicle sales were up only 0.1%, slowing down from a strong season towards the end of 2025, when automakers were pushing to meet regulatory targets.
Industry Forecast for 2023
Tesla sales in the UK halved to 718 units in January and were trailing Chinese rival BYD's sales which were up two and a half fold to 4,021 units, SMMT data showed, echoing numbers released by New Automotive on Wednesday.
"Britain's new car market is building back momentum after a challenging start to the decade. It is also decarbonising more rapidly than ever and, despite a January dip in EV market share, the signs point to growth by the end of the year," SMMT chief executive Mike Hawes said.
The industry body raised its annual forecast for UK car sales to 2.048 million units, from its previous expectation of 2.032 million units.
(Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita Bhattacharjee)
Key Takeaways
- •UK car sales rose by 3.4% in January compared to last year.
- •144,127 new car units were sold in January.
- •Private retail purchases largely drove the sales increase.
- •Data provided by the Society of Motor Manufacturers and Traders.
- •The report was compiled by Prerna Bedi in Bengaluru.
Frequently Asked Questions about UK January new car sales rise to best in six years, industry data shows
1What are new car sales?
New car sales refer to the number of brand new vehicles sold by dealerships to consumers within a specific time period, typically measured monthly or annually.
2What is the significance of market trends?
Market trends indicate the general direction in which a market is moving, helping businesses and investors make informed decisions based on consumer behavior and economic conditions.
