FX.co ★ UK Car Registrations Decline Moderates in January, Signalling Tentative Stabilisation

The United Kingdom’s car registration figures showed a smaller month‑on‑month decline in January 2026, hinting at a possible stabilisation in demand after a weaker end to last year. According to the latest data updated on 24 February 2026, registrations fell by 1.5% in January compared with the previous month, improving from a 3.2% month‑on‑month drop recorded in December 2025.

The data, which measures changes in registrations on a month‑over‑month basis, indicates that while the market is still contracting, the pace of decline has eased. In December 2025, the indicator showed a sharper deterioration as registrations fell 3.2% versus November, whereas January’s 1.5% decrease versus December suggests the sector may be moving toward a more stable footing.

Market observers will be watching upcoming monthly figures closely to determine whether January’s softer decline marks the beginning of a sustained improvement in UK car registrations or merely a temporary pause in a broader slowdown.