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How the UK New-Car Market Is Changing in 2026

New brands, expanding electric-car requirements and Motability Scheme changes are reshaping the choices available to UK drivers.

How the UK New-Car Market Is Changing in 2026

Source image: Motability Scheme. See the linked original report.

Based on the linked source; automatically prepared and checked against the original report.

New brands gain ground

The UK market is changing quickly. In March 2026, Jaecoo 7 became the country’s best-selling new car, the first Chinese model to top new-car registrations. BYD, Chery, Omoda, Changan and Leapmotor are also expanding, while Mitsubishi has returned to the UK. The Motability Scheme says this growing competition should widen model choice, although customers should research carefully before deciding.

More choice and local production

Improving supply has made waiting times for new models more manageable after pandemic-related restrictions. Small cars are returning to popularity, including electric, hybrid and plug-in-hybrid models, while seven-seat SUVs and some six-seat vehicles are becoming more common. The UK is Europe’s second-largest new-car market, and factories in Hungary, Poland and Spain are already producing some Chinese models. Nissan and Chery have agreed to explore UK production at Sunderland.

Electric transition and Scheme changes

The 2026 ZEV target requires 33% of new cars to be electric, rising to 80% by 2030 under current targets. Speculated revisions are not official. Motability says its leases can include a home chargepoint and standard installation, while PAS 1899 provides guidance for accessible public charging. From July 2026, VAT and Insurance Premium Tax apply to most new leases; mileage, excess-mileage and overseas-administration arrangements also changed, while insurance, servicing, maintenance and breakdown cover remain included.

Sources & further reading

Motability Scheme — original report

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