Market Overview - The UK new car market grew by 3.4% in January, reaching 144,127 units, with growth across all buyer types [1] - Private retail buyers saw a 4.5% increase in registrations, while fleet registrations increased by 1.6%, and the low-volume business segment rose significantly by 46.5% [1] Electric Vehicle (EV) Performance - Battery electric vehicle (BEV) uptake rose by only 0.1% to 29,654 units, resulting in a 20.6% market share, the lowest since April 2025 [2] - The decline in BEV market share follows a strong performance in January 2025, influenced by buyers' attempts to avoid new tax rates on BEVs [2] - BEV sales are falling short of mandated targets under the UK government's Zero Emission Vehicle Mandate, with a target of 33% market share for 2026, compared to last year's target of 28% which was missed at 23.4% [3] Growth in Electrified Vehicles - Plug-in hybrids (PHEVs) recorded the largest growth, increasing by 47.3% to account for 12.9% of registrations [4] - Hybrid electric vehicles also saw a 4.8% increase, making up 13.4% of the market [4] Industry Insights - The SMMT Chief Executive noted that the UK car market is regaining momentum after a challenging start to the decade and is decarbonizing rapidly [5] - Despite a dip in EV market share in January, there are indications of growth by the end of the year, although the pace of transition may be slowing and is behind mandated targets [5] - A comprehensive review of the transition is necessary to align ambition with reality, especially with plans to end sales of new petrol and diesel cars in less than four years [5]

Core Insights - Tariffs have significantly impacted the U.S. automotive industry, particularly affecting Japanese automakers with a 27.5% duty on exports to the U.S. [1] - Japanese car companies accounted for nearly 20% of U.S. consumer spending on auto imports, with Mexico being the only country with a higher percentage [3] - Toyota has reported a strong performance in the U.S. market, with a 3.7% year-over-year increase in vehicle sales [4] Group 1: Japanese Automakers' Impact - Japanese automakers produced 3.28 million vehicles in the U.S. last year, employing nearly 75,000 manufacturing workers [4] - Japan renegotiated its tariff rate to 15%, effective retroactively from September 16 [4] - Toyota's sales in the U.S. reached over 2.3 million vehicles in 2024, marking a significant increase [4] Group 2: Toyota's Performance - In the first quarter of FY 2026, Toyota sold 800,000 vehicles in North America, making it the company's most important region [5] - Toyota's U.S. production increased by 26% in October, contributing to a fifth consecutive month of increased output [9] - Global output for Toyota rose 4% year-over-year to 926,987 cars, with a 2% increase in worldwide sales [8] Group 3: Sales and Market Trends - Toyota's sales in the U.S. for October reached 207,910 vehicles, continuing a trend of double-digit sales increases [9] - For the third quarter, Toyota North America reported a 16% increase in sales, totaling 629,137 vehicles [10] - Hybrids accounted for 42% of Toyota's global sales through the first 10 months of the year [10]