Britain's new car market accelerated in September, with registrations climbing 12.1% to 350,518 units, according to preliminary figures released by the Society of Motor Manufacturers and Traders (SMMT). The result marks the tenth consecutive month of growth and the strongest September performance since 2017, when 426,170 units were registered.

September is traditionally one of the most important months for the industry, as the twice-yearly plate change typically accounts for roughly one in seven annual registrations. While improving consumer confidence and better-than-expected GDP growth have played a part, the SMMT said the overall rise has largely been driven by fierce competition, particularly from new entrants to the market, alongside greater choice and attractive deals that are tempting buyers who might otherwise have opted for a used car.

All sales categories recorded growth. Fleet registrations rose 9.6% to 190,988 units, making up 54.5% of the market, while private buyer demand increased 13.9% to 149,158 units, a 42.6% share. The smaller business sector saw the sharpest rise, up 37.6% to 10,372 units.

Electrified vehicles were central to the month's performance, accounting for a record 58.4% of all registrations. Battery electric vehicles (BEVs) led the charge, with demand up 36.3% to a record 99,199 units, lifting their market share by five percentage points to 28.3%. That works out at nearly five new electric cars joining UK roads every minute, more than double the rate seen three years ago. Plug-in hybrids also hit record volumes, surging 55.7% to take a 17.0% share, while conventional hybrid uptake dipped 4.2%, reducing its share to 13.1%.

The growth has been fuelled by an explosion of choice, discounting and government support. Since 2023, the number of BEV models available has more than doubled to 178, and combined with over 110 plug-in hybrid and 50 hybrid models, electrified vehicles now make up more than three-quarters of all new cars on sale. Substantial manufacturer discounts and the government's Electric Car Grant have also helped drive buyers toward electric options.

Despite the record month, year-to-date BEV registrations of 454,945 represent just 26.2% of the market, still short of last year's 28% mandate target and well below the 33% required in 2026. The SMMT estimates that hitting that 33% goal would require around 265,000 additional BEV registrations in the final quarter alone, based on a forecast 2.183 million-unit market for the year.

The industry body said the ongoing review of the ZEV Mandate presents an opportunity to align regulation more closely with real-world demand, arguing this would strengthen UK competitiveness, encourage further investment in new models and plants, protect jobs, and support a sustainable path to decarbonisation.

Source: SMMT

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