UK New Car Market Holds Steady as Electric Vehicles Drive Growth

The UK new car market continued its slow but steady upward trajectory in October, with electric vehicles once again doing the heavy lifting. Despite a small dip in fleet registrations, rising demand from private buyers and strong EV uptake helped keep the market stable.

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), overall registrations in October rose 0.5% to 144,948 units, with EVs claiming more than a quarter of all new car sales.

Electrified Vehicles Hit Majority Share

October marked the second consecutive month in which electrified vehicles made up more than half of all new registrations, taking a combined 50.8% market share.

EVs led the charge:

• EV registrations jumped 23.6%, adding more than 7,000 extra vehicles.

• EVs secured 25.4% of the market – the second-highest share this year, though still below the Government’s 28% ZEV mandate target.

• PHEVs climbed 27.2% to a 12.1% market share.

• HEVs grew 2.1%, taking 13.3%.

By contrast, combustion engine vehicles continued to fall out of favour. Diesel registrations plunged 22.9%, while petrol sales dropped 11.6%, now representing just 44.4% of the market – down from 50.5% a year earlier.

BEV Growth Accelerates Year-to-Date

The strength of the EV market is even more visible when looking at the year so far. In the first ten months of 2025:

• EV registrations surged 28.9% to 386,244 units.

• That figure already exceeds total EV registrations for the whole of 2024.

• EVs now account for 22.4% of all new car sales in 2025.

The SMMT credits this momentum to major manufacturer investment and the Government’s Electric Car Grant, launched in summer 2025.

Transport Secretary Heidi Alexander said the surge in EV adoption shows that “more families than ever have the confidence to go electric,” noting that over 30,000 people have now benefited from the grant.

Forecasts: Strong Growth Ahead—But Short of ZEV Targets

New SMMT forecasts reveal how rapidly rising EV demand is reshaping the market outlook:

• 2025: Market projected to exceed 2 million units for the first time since 2019, with EVs making up 23.3% of sales.

• 2026: Expected to reach 2.032 million units with EVs at 28.2%—strong progress, but still below the mandated 33% target.

• 2027: EVs forecast to hit 32.2%, again falling short of the Government’s 38% mandate.

Despite accelerating growth, the UK is still on a trajectory that risks missing its medium-term ZEV requirements.

Industry Voices: Support Needed to Maintain EV Momentum

Reaction from across the automotive and leasing sectors emphasised one theme: EV growth remains strong, but progress is fragile.

EVs Becoming Easier for Drivers

Nick Williams, managing director transport at Lex Autolease, pointed to growing consumer interest and said that government plans to simplify home charger installation will help keep momentum strong.

Used EV Market Strengthening

James Hosking, managing director of AA Cars, noted that more EVs entering the used market is making electric motoring far more accessible. Many used EVs have seen substantial price drops compared with last year.