The UK new car market recorded its strongest September since 2017, with registrations rising 12.1% year over year to 350,518 units, according to preliminary figures from the Society of Motor Manufacturers and Traders (SMMT). Electric vehicles played a major role in the growth, with battery-electric car registrations climbing to a record 99,199 units.
September marked the 10th consecutive month of growth for the UK automotive market, as increased model availability, competitive pricing and government incentives encouraged more buyers to consider new vehicles.
The September plate-change period is one of the most important months for the industry, typically accounting for around one-seventh of annual new car registrations. Improved consumer confidence and resilient economic growth also supported demand, although intense competition and attractive manufacturer discounts remained major drivers of the market’s expansion.
Battery-Electric Car Sales Reach Record High
Battery-electric vehicles (BEVs) delivered one of the strongest performances in September. Registrations increased by 36.3% compared with the same month last year, reaching a record 99,199 units.
BEVs accounted for 28.3% of all new car registrations, an increase of five percentage points. The figures mean that almost five new battery-electric cars were registered every minute during the month, more than twice the rate recorded three years earlier.
The growth reflects a wider selection of electric cars, particularly in smaller vehicle segments, as well as substantial discounts and support from the UK government’s Electric Car Grant.
Plug-in hybrid electric vehicles (PHEVs) also recorded significant gains. Registrations surged 55.7%, giving the technology a record 17% share of the market. Conventional hybrid electric vehicles (HEVs), however, moved in the opposite direction, with registrations falling 4.2% and market share declining to 13.1%.
Combined, electrified vehicles accounted for a record 58.4% of new car registrations in September, underlining the growing importance of electrified powertrains in the UK automotive market.
New Car Registrations Rise Across All Sales Channels
Growth extended across private buyers, company fleets and smaller businesses.
Fleet registrations increased 9.6% to 190,988 units, representing 54.5% of the market. Private registrations rose 13.9% to 149,158 units, giving individual buyers a 42.6% share.
The smaller business sector recorded the fastest growth, with registrations climbing 37.6% to 10,372 units.
Competition between manufacturers is also reshaping the market. A broader range of vehicles, more aggressive pricing and promotional offers are attracting customers who might otherwise have purchased used cars.
UK Electric Car Market Offers More Choice Than Ever
The number of battery-electric models available in the UK has more than doubled since 2023, reaching 178 models. Buyers can also choose from more than 110 plug-in hybrids and over 50 conventional hybrids.
As a result, electrified vehicles now account for more than three-quarters of the new car models available in the market.
The expanding selection gives consumers more options across different budgets and vehicle categories. It also increases competition among manufacturers, encouraging discounts and making electric cars more accessible to a wider range of buyers.
However, September’s record registrations also highlight the gap between the market’s current trajectory and the UK’s regulatory ambitions for electric vehicle adoption.
UK Electric Car Sales Still Lag Behind 2026 Targets
Despite the strong September performance, the UK remains behind its annual battery-electric vehicle sales targets.
A total of 454,945 new BEVs were registered during the first nine months of the year, accounting for 26.2% of all new car registrations. That remains below the 33% target for 2026 and the previous year’s 28% target.
Based on the industry’s latest forecast of 2.183 million new car registrations for the full year, reaching a 33% BEV share would require approximately 265,000 additional electric car registrations in the final quarter alone.
That would represent a substantial increase in demand over a relatively short period, highlighting the challenge of achieving the mandated share even as electric car sales continue to grow.
The figures also demonstrate that record monthly registrations do not necessarily translate into progress at the pace required by regulation. Manufacturer discounts and government incentives are helping stimulate demand, but the market still faces a considerable challenge in closing the gap.
September’s figures demonstrate that demand for electric cars is growing, supported by greater choice, competitive pricing and government assistance. The remaining challenge is sustaining that momentum at a pace sufficient to meet the UK’s targets.
With hundreds of thousands of electric vehicles already registered this year, the final quarter will be critical in determining how close the market comes to its 2026 ambitions.
[source: SMMT]
