The UK new car market has recorded its strongest start to a year since 2020, but behind the headline growth lies a dramatic shift in powertrain trends.
While pure electric vehicle (BEV) growth stalled in January, Plug-in Hybrids (PHEVs) surged by nearly 50%, a trend that carries significant implications for independent garages preparing for the future.
According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), the market grew by 3.4% in January to reach 144,127 units.
Growth was recorded across all buyer types, with private registrations up 4.5% and fleets rising 1.6%.
However, for workshop owners watching the changing parc, the headline volume is less important than the technology under the bonnet. And in January, that story was dominated by hybrids.
The hybrid explosion
While the industry focus remains heavily on the transition to full electric, the data shows that hybrid technology is currently driving the most significant volume changes.
Plug-in Hybrids (PHEVs) were the standout performer in January, rising by a massive 47.3% to claim a 12.9% market share. Standard Hybrid Electric Vehicles (HEVs) also grew by 4.8%, taking 13.4% of the market.
Combined, electrified hybrids now account for more than a quarter of all new cars hitting the road.
For independent garages, this reinforces a critical reality: the immediate future of the aftermarket is not just “electric vs. petrol,” but a complex middle ground.
These vehicles combine the maintenance requirements of an internal combustion engine with high-voltage systems, doubling the potential failure points and requiring technicians to be versatile across both disciplines.
BEV momentum stalls
In contrast to the hybrid surge, the uptake of Battery Electric Vehicles (BEVs) virtually flatlined in January, rising just 0.1% to 29,654 units.
This resulted in a market share of 20.6%, the lowest seen since April 2025.
The SMMT attributes this dip to a hangover from a very strong December 2025, where manufacturers pushed hard to meet regulatory targets, effectively pulling demand forward.
Despite this slow start, the SMMT has upgraded its full-year forecast, predicting that BEVs will capture 28.5% of the market in 2026, aided by improved model choice and the re-introduction of the Electric Car Grant.
However, this still falls significantly short of the 33% target required by the Zero Emission Vehicle (ZEV) mandate for this year.
The mandate disconnect
The widening gap between the government’s ZEV mandate targets and real-world sales is causing friction.
The SMMT warns that despite billions in manufacturer investment and heavy discounting, the “assumptions behind the creation of the mandate have not borne out.”
Mike Hawes, SMMT Chief Executive, called for an urgent review: “Britain’s new car market is building back momentum… However, the pace of the transition 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.”
Why it Matters
Fleets continue to dominate (61.2% of the market). These vehicles, often driven harder than private cars, will enter the independent network in 3-4 years, bringing this complex powertrain mix with them.
With BEVs missing targets and hybrids growing, the “death of the engine” remains a long-term process, not an overnight event. Core mechanical skills remain as vital as EV certification.
Are you seeing a surge in hybrids booking in, or is your workshop still dominated by traditional petrol and diesel? Let us know what the reality looks like on the front line in the comments below.
