Market Overview - The UK new car market experienced a 7.2% increase in February, reaching 90,100 registrations, marking the highest February volume in 22 years [1] - The month typically sees lower volumes, leading to volatility as many buyers wait for the March numberplate change [1] Demand Drivers - The growth in demand was primarily driven by recovering private retail registrations, which rose by 17.6% to 35,227 units [2] - Fleet registrations increased by 1.8%, while the lower-volume business segment saw a decline of 12.7% [2] - Fleets accounted for 59.4% of new car registrations, remaining the largest source in the market [2] Electric Vehicle Trends - Battery electric vehicle (BEV) registrations increased by 2.8% to 21,840 units, representing 24.2% of the market [3] - However, BEV market share declined for the second consecutive month compared to the previous year, partly due to a strong start in 2025 as buyers aimed to avoid new tax rates [3] - Plug-in hybrids (PHEVs) saw the largest growth, up 43.5% to capture an 11.6% market share, while hybrid electric registrations rose by 3.3% to a 13.1% share [4] Market Dynamics - Petrol demand grew by 5.2%, but its market share decreased to 46.5%, while diesel volumes continued to decline, down 3.8% to just 4.5% of the market [4] - Year-to-date BEV market share stands at 22.0%, which is two-thirds of the 33% target mandated for 2026, making March a critical month for the market [5] Industry Insights - Manufacturers have invested billions in new models and discounts to stimulate demand, supported by the government's Electric Car Grant [5] - The SMMT Chief Executive highlighted the need for a holistic review of the transition to electric vehicles, emphasizing that buyer confidence may weaken due to plans for a pay-per-mile tax for EVs starting in 2028 [6] - The urgency of reviewing the transition is underscored by the impending end of sales for new petrol and diesel cars in less than four years, necessitating rapid acceleration in EV uptake [6]

Core Insights - Stellantis is reintroducing diesel versions of at least seven models in Europe as it retreats from electric vehicles due to disappointing EV sales and changing emissions regulations [1] - The company aims to leverage diesel cars as a competitive advantage against Chinese EV rivals, which do not compete in the diesel segment [1] - Stellantis has reported a significant financial charge of €22.2 billion ($26.4 billion) as it scales back its EV ambitions, impacting its stock performance [1] Group 1: Company Strategy - Stellantis has decided to keep diesel engines in its product portfolio and increase its powertrain offerings in response to customer demand [1] - The company is bringing back popular combustion-engine models, including the Jeep Cherokee and Fiat 500 petrol hybrid, to regain market share in the U.S. [1] - Diesel models being reintroduced include the Opel Astra, Opel Combo van, Peugeot Rifter, and Citroën Berlingo, among others [1] Group 2: Market Context - Diesel vehicles accounted for 50% of new car sales in Europe in 2015 but have declined to just 7.7% by 2025, while fully electric cars made up 19.5% [1] - The shift towards diesel comes as Stellantis faces a 3.9% decline in European sales in 2025 and a 7.3% decline in 2024 [1] - The total number of new diesel models in the UK has decreased from 167 in 2020 to 57 in 2025, indicating a broader market trend [1]

Core Point - Major car manufacturers are facing a significant trial in London's High Court, with 1.6 million claimants accusing them of cheating diesel emissions tests, reminiscent of the Volkswagen 'dieselgate' scandal from a decade ago [1] Group 1 - The trial involves some of the world's largest carmakers, indicating a widespread issue within the automotive industry regarding emissions testing [1] - The case highlights ongoing legal repercussions and scrutiny in the automotive sector following past scandals, particularly the Volkswagen emissions scandal [1] - The number of claimants, totaling 1.6 million, underscores the scale of the allegations and potential impact on the industry [1]