The UK new car market continued its upward trend in October, with registrations increasing by 5.4% year over year to 152,730 units. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) were the main drivers of growth, highlighting the accelerating shift toward electrified transportation.
October marked the 11th consecutive month of growth for the UK automotive market. However, the increase was slower than the average growth recorded during the first 10 months of the year, partly reflecting the unusually strong performance in September following the introduction of new number plates.
Electric vehicles continued to gain ground, with battery-powered models achieving their highest market share of the year.
Electric Cars Account for 32% of UK New Car Sales
Battery electric vehicle registrations increased by an impressive 32.7% in October compared with the same month last year. BEVs accounted for 32.0% of all new car registrations, meaning almost one in three new cars sold in the UK was fully electric.
Plug-in hybrid sales also recorded strong growth, rising 30.1% and securing a 15.0% market share.
Together, BEVs and PHEVs represented 47% of the UK new car market in October. When conventional hybrids are included, electrified vehicles accounted for almost six in 10 new car registrations.
However, not every electrified powertrain experienced growth. Hybrid electric vehicle (HEV) registrations declined by 5.0%, marking the second consecutive monthly decrease.
The latest figures suggest that consumer demand is increasingly shifting toward vehicles that offer some level of plug-in capability, particularly fully electric cars.
More Than 500,000 Electric Cars Registered in 2026
The strong October performance helped push total UK battery electric vehicle registrations beyond the half-million milestone.
A total of 503,805 new BEVs were registered during the first 10 months of the year, representing a 30.4% increase compared with the same period last year.
Automakers are continuing to invest heavily in electric vehicle technology, production facilities and workforce development. According to the SMMT, manufacturers have committed £14.3 billion to UK electric vehicle manufacturing since 2020.
These investments have helped expand the selection of electric vehicles available to British buyers. More than 180 BEV models are now on the market, with an average driving range exceeding 300 miles on a full charge.
The growing choice of models, improved driving ranges and increasingly competitive pricing are helping make electric cars more attractive to mainstream buyers.
ZEV Mandate Targets Remain a Major Challenge for Automakers
Despite the impressive growth in electric vehicle registrations, the UK automotive industry remains concerned about the government’s Zero Emission Vehicle (ZEV) Mandate.
The regulation requires manufacturers to increase the proportion of zero-emission vehicles in their annual sales. However, the SMMT argues that the targets are becoming increasingly difficult to achieve because consumer demand is not growing at the same pace.
According to the latest market outlook, BEVs are expected to account for 27.2% of new car registrations for the full year, falling short of the 33% ZEV Mandate target.
The gap is expected to continue next year. Electric vehicles are forecast to achieve a 32% market share in 2027, compared with a mandated target of 38%.
By 2028, the situation could become even more challenging. BEV market share is projected to reach 37.5%, while the mandated target is scheduled to rise to 52%.
That would leave manufacturers facing a substantial 14.5 percentage-point shortfall.
To encourage more electric vehicle purchases, automakers have increasingly relied on discounts, low-interest and zero-interest financing, deposit contributions and subsidized charging offers.
While these incentives help make electric cars more affordable, they also put additional pressure on manufacturers’ profit margins.
The SMMT warns that forcing manufacturers to sell new electric vehicles at heavily discounted prices could undermine the UK’s attractiveness as both a sales market and a manufacturing destination. Lower new-car prices could also affect used EV residual values, potentially making it harder for existing owners to afford their next vehicle.
UK EV Market Continues to Grow, but Policy Changes May Be Needed
October’s registration figures demonstrate that electric vehicles are becoming an increasingly important part of the UK automotive market.
With BEV registrations growing by 32.7% and more than 500,000 fully electric cars registered during the first 10 months of the year, the transition is clearly progressing.
However, the latest figures also highlight the challenges facing manufacturers as government targets become more ambitious.
The coming years will be particularly important for the UK EV market. Making electric cars more affordable, expanding charging infrastructure and providing consistent government policies could prove just as important as increasing the number of available models.
The challenge for policymakers will be finding the right balance between accelerating the transition to zero-emission vehicles and maintaining a healthy, competitive automotive industry.
[source: SMMT]
