New Vehicle Registrations Open The Year Higher, Led By Light Passenger Demand

New vehicle registrations totalled 11,806 units in January 2026, an increase of 960 units or 8.9 percent compared with the same month last year.

The January result suggests a firmer start to the year for the new vehicle market, with growth led by light passenger vehicles. While overall volumes were higher, the pattern of demand suggests the market is rebuilding gradually rather than accelerating, with gains concentrated in specific segments and buyer groups.

Motor Industry Association Chief Executive Aimee Wiley said the January outcome points to improving conditions, while highlighting the need for caution.

“January has opened the year on a stronger footing than the same month last year, with growth coming through most clearly in light passenger vehicles. The increase was supported by higher rental registrations and steady business demand, while private registrations were slightly lower.

These results indicate improving conditions, but the market continues to remain sensitive to broader economic and confidence settings.”

Economic Context

Published economic forecasts continue to point to a gradual improvement in conditions through 2026, supported by easier interest rate settings and firmer business confidence, while labour market conditions remain an important influence on household spending decisions.

For the automotive sector, this backdrop is consistent with improving but uneven demand, where business and fleet activity provides stability, while household purchasing remains cautious.

Motive Power Trends

Across the Total Industry, battery electric vehicles recorded 761 registrations in January, representing 6.4 percent of the market and higher than the same month last year. Plug in hybrid vehicles recorded 738 registrations or 6.3 percent of the market, while hybrid electric vehicles accounted for 3,312 registrations or 28.1 percent.

Electrified vehicles, comprising battery electric, plug in hybrid, and hybrid electric models, totalled 4,811 registrations in January, representing 40.8 percent of new vehicle registrations.

Within the light passenger segment, electrified vehicles accounted for just over half of registrations. In the light commercial segment, electrified vehicles represented a smaller share of demand at 9.8 percent, compared with 25.9 percent in the same month last year.

Summary

January results were higher than the same month last year, with growth led by light passenger vehicles. Demand strength was more evident in rental and business channels, while private registrations remained softer. Overall, the January outcome is consistent with recent months, indicating the market is continuing to stabilise gradually rather than shifting into a stronger growth phase.

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