The UK new car market has continued its recovery in 2026, with electric vehicles, plug-in hybrids and Chinese manufacturers becoming the biggest forces shaping the industry.
New figures from the Society of Motor Manufacturers and Traders (SMMT) show that registrations increased by 9.2% during the first six months of the year, reaching 1.138 million vehicles.
However, behind the positive headline numbers, the market is undergoing a major transformation. Traditional manufacturers are facing stronger competition, while newer brands from China are quickly gaining the attention of British buyers.
<h3>Chinese Brands Become The Biggest Surprise</h3>
The strongest growth story of 2026 has come from Chinese manufacturers, particularly the Chery Group, which includes brands such as Jaecoo, Omoda and Chery.
The biggest success has been Jaecoo, whose SUV models have quickly become popular among UK customers. The Jaecoo 7 ranked among the country’s best-selling vehicles in the first half of the year, with 23,840 registrations.
Together with the smaller Jaecoo 5 and larger Jaecoo 8, the brand recorded 34,067 sales during the first six months of 2026. This puts it close to several established European manufacturers that have traditionally dominated the market.
The rapid expansion reflects a wider trend: Chinese brands are no longer competing only on price. Many buyers are attracted by modern designs, advanced technology and competitive equipment levels.
<h3>Electric Cars Reach New Records</h3>
Electric vehicles continued to drive market growth in 2026. Battery electric cars accounted for 25% of all new registrations during the first half of the year, compared with 21.6% during the same period in 2025.
June was an especially important month, when electric cars represented around three in every 10 new registrations — exceeding the combined share of hybrid and plug-in hybrid models.
The growth has been supported by wider model availability and more competitive pricing. Many manufacturers are introducing new electric vehicles across different segments, from affordable city cars to premium SUVs.
Despite this progress, industry representatives continue to discuss whether consumer demand is increasing quickly enough to meet government targets for electric vehicle adoption.
<h3>Tesla Finds New Momentum</h3>
After a challenging period, Tesla has shown signs of recovery in the UK market. The company benefited from new offers, price adjustments and the arrival of more affordable versions of its vehicles.
In June 2026, the Tesla Model Y and Model 3 became the two best-selling new cars of the month. Tesla registrations were also up by 22% compared with the previous year.
Although monthly figures can sometimes be influenced by delivery patterns, the results suggest that Tesla remains a significant player in Britain’s electric vehicle market.
<h3>Ford Remains A UK Favourite</h3>
While some reports have questioned Ford’s future position in Europe, its sales figures show that the brand remains highly competitive in the UK.
The Ford Puma continued to be the country’s best-selling new car, with 29,942 registrations between January and June 2026.
The brand also maintained a strong position in commercial vehicles. The Transit Custom remained the UK’s leading van, with 23,000 registrations during the same period.
Ford’s success demonstrates that established manufacturers can still compete when they offer popular models that match everyday customer needs.
<h3>Some Brands Face Difficult Months</h3>
Not every manufacturer benefited from the market recovery. Several brands experienced significant declines during the first half of 2026.
DS struggled despite launching new models, registering only 112 vehicles in six months — an 88% decline compared with the previous period. Other Stellantis brands also faced challenges, with Fiat sales falling by 39% and Peugeot declining by 14%.
Mazda also recorded weaker results, with sales dropping by 21%. The company is hoping that new models, including the CX-5 and Mazda 6e electric saloon, will help improve its position.
<h3>Chinese Cars Take A Larger Share</h3>
Chinese manufacturers now represent a significant part of the UK market. More than 15% of new cars sold during the first half of 2026 came from Chinese-owned companies or brands classified as Chinese.
That represents almost 175,000 vehicles. However, the majority of these sales were concentrated among three major players: BYD, MG and the Chery Group.
Other Chinese brands, including Xpeng, GWM and Changan, have struggled to achieve the same level of popularity.
The first half of 2026 shows that the UK car market is entering a new era. Electric vehicles are becoming mainstream, Chinese manufacturers are expanding rapidly, and traditional brands must adapt to changing customer expectations. The competition for British drivers is becoming stronger — and buyers now have more choices than ever before.
