Customers are Choosing a Plug over Petrol or Diesel in new SMMT Report

Car NewsAutomotive IndustryIndustry updates

4 Jun

With the conflict in the Middle East ongoing, and prices for petrol and diesel remaining high, customers have been voting with their wallets choosing battery electric cars and plug-in hybrids in increasing numbers, whilst full hybrid registrations remaining flat.

Snapshot

The good news is the new car market rose 7.1% to 160,662 units in May and was its best performance for the month since 2019 reflecting a return to a more buoyant market. This is good for the economy and good for jobs as it shows a strong demand in expensive goods.

Private buyer demand rose 17.2% as the market has been reinvigorated by wider choice, very competitive deals and a desire to switch to alternative fuels to save money from the ongoing expense of high petrol or diesel prices with no signs of that abating.

Private buyers drove the increase in demand with registrations up 17.2% as consumers responded to a 6.4% increase in model choice - according to the SMMT - and it now accounts for 40.9% market share, which is a significant growth from the same time last year.

Fleet demand grew more modestly, rising 1.8% but accounted for 57.1% of all registrations. The smaller business sector declined -18.8%, although in volume terms the drop was marginal at 720 units. Business accounts for just 1.9% market share.

What’s Up and What’s Down

The shift in demand for the plug continues as registrations of new petrol and diesel cars fell by -7.1% and -2.2% respectively.
Hybrid electric vehicles (HEV) - often called self-charging hybrids or full hybrids - shows an increase of just 1.8% taking a 12.9% market share vs 13.6% for the previous year. And plug-in hybrid deliveries grew 23.9% taking a market share of 13.8%, up from 11.9% from may 2025.
However, the new vehicle registration data for hybrids and PHEV’s are contra to the trends observed in the used market where the results are flipped, with used buyers preferring a HEV over a PHEV.

Battery electric vehicle (BEV) uptake increased by 34.2% to take 27.3% of the market, the highest recorded so far in 2026 and an increase from a 21.8% market share observed a year ago.

However, despite the recent momentum, the transition to zero-emission cars remains below the ZEV Mandate of 33% market share on a year-to-date basis. Five months in to 2026 shows the current BEV market share is 23.9%. And even when taking flexibilities into account, this represents a serious problem for manufacturers if the wish to avoid hefty fines by the U.K. Government, although there is some pressure on Government to address the mandatory, arbitrary targets.

Best Sellers

The Ford Puma retained its top spot in the charts selling 4,019 units in May, with the Kia Sportage in 2nd spot at 3,439 units and the Vauxhall Corsa coming in at 3rd place with 3,075 units. However, Jaecoo were just 49 cars short of 3rd place with their JAECOO 7 taking 4th spot with 3,027 cars, which is a phenomenal result given that it has only been on sale since September and the brand only launched in the U.K. at the start of last year.

SMMT Summary

Mike Hawes, SMMT Chief Executive, said, “Britain’s car buyers are responding to a market offering more choice than ever, from both new and familiar brands, resulting in a robust May. The EV transition is progressing, but consumer uptake still lags behind even today’s targets, let alone the ambition set out in the latest Carbon Budget. While industry shares the long-term ambition, the pathway to Net Zero must be credible. It cannot come at the cost of lost competitiveness and deindustrialisation. A review of the transition is now urgent to ensure ambition matches market realities and we have a sustainable path to road transport decarbonisation.”