UK new car market grows 5.4% in October with electric cars surging

The UK new car market grew 5.4% in October to reach 152,730 registrations, marking the 11th consecutive month of growth, according to the Society of Motor Manufacturers and Traders.

Battery electric cars captured 32% of registrations during the month, their highest share this year, as manufacturers increased efforts to meet annual mandated targets. The growth came as buyers responded to expanding model choices and promotional offers.

Fleet registrations rose 5.4% to 89,985 units, representing 58.9% of the market. Private demand increased 4.1% to 58,229 units with a 38.1% share. Business registrations climbed 24.5% to 4,516 units.

Plug-in hybrid and battery electric vehicles accounted for all of the growth.

Plug-in hybrid registrations rose 30.1% to take a 15% market share, while battery electric deliveries increased 32.7%. Hybrid volumes declined 5%, but electrified cars together accounted for 59% of registrations.

More than 503,805 battery electric vehicles have been registered this year, up 30.4% from a year ago.

The current market offers more than 180 battery electric models with an average range exceeding 300 miles on a single charge.

The SMMT forecasts battery electric vehicle share will reach 27.2% this year against the 33% ZEV Mandate target.

The gap is expected to widen next year with a 32% share projected against a 38% target.

By 2028, battery electric share is expected to reach 37.5%, 14.5 percentage points behind the required 52%.

The industry is calling for changes to the targets to better reflect demand, alongside full flexibilities throughout the regulation. Last week’s Budget confirmed a new electric vehicle-specific tax from 2028 and proposed regulation to retain VAT on public charging at 20% while domestic use remains VAT-free.