The UK's new car market extended its run of growth into October, rising 5.4% to 152,730 registrations, marking the eleventh consecutive month of increases, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). The pace of expansion was roughly half that seen over the first ten months of the year, a period boosted by a strong September number-plate change.

Every sales channel contributed to the rise. Fleet registrations grew 5.4% to 89,985 units, representing 58.9% of the market, while private buyers added 4.1% to reach 58,229 units, or a 38.1% share. Business registrations surged 24.5% to 4,516 units.

The growth was driven almost entirely by plug-in hybrids and battery electric vehicles. Plug-in hybrid registrations jumped 30.1% to claim a 15.0% share, while battery electric cars rose 32.7% to secure 32.0% of the market, their strongest showing of the year, as manufacturers pushed hard to close the gap to the annual mandated target, echoing a pattern seen in each of the past two years. Conventional hybrids fell 5.0% for a second straight month, but electrified vehicles collectively made up nearly six in ten registrations.

More than half a million battery electric cars, 503,805, have now been registered this year, up 30.4% on 2025. That growth has been underpinned by £14.3 billion invested in UK EV manufacturing since 2020, producing over 180 battery electric models with an average range exceeding 300 miles.

However, SMMT warns that such investment needs to deliver returns, and manufacturers have instead been forced to pour billions into discounts, 0% finance deals, deposit contributions and subsidised charging to drive sales beyond natural demand. The body says this erodes profitability and will eventually hit consumers through weaker trade-in values.

Despite the incentives, including the government's Electric Car Grant, battery electric share is forecast to reach just 27.2% this year, short of the 33% ZEV Mandate target. The shortfall is expected to grow to 32% against a 38% goal next year, and by 2028 to 37.5%, against a required 52%, more than double today's gap.

SMMT is calling on government to revise the Mandate's targets to reflect real demand and build in greater flexibility. It criticised last week's Budget for offering little support, highlighting the planned EV-specific tax from 2028 and retention of 20% VAT on public charging as conflicting with efforts to encourage drivers to switch. The industry insists a healthy market is essential to protecting the UK's £85 billion automotive sector and its 188,000 jobs.

Source: SMMT

Related reading from us: Vauxhall Passes 100,000 BEV Sales Milestone in the UK