UK new car market records strongest September since 2017

The UK new car market grew by 12.0% in September as record battery electric vehicle (BEV) registrations helped deliver the strongest September performance since 2017, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 350,536 new cars were registered during the plate-change month, marking the market’s tenth consecutive month of growth.

Fleet registrations increased by 9.6% to 190,998 units, accounting for 54.5% of the market, while private demand rose 13.9% to 149,166 units and a 42.6% share. Registrations by the smaller business sector increased 37.3% to 10,372 units.

The SMMT said improving consumer confidence and more resilient economic growth had supported the market, although intense competition, greater model choice and attractive deals were significant drivers of September’s performance.

Electrified vehicles accounted for a record 58.4% of all new car registrations during September.

BEV registrations climbed 36.3% to a record 99,201 units, equivalent to almost five new electric cars joining the road every minute. BEVs accounted for 28.3% of the overall market, up five percentage points year-on-year.

Plug-in hybrid (PHEV) registrations also increased sharply, rising 55.5% and achieving a record 17.0% market share. Hybrid electric vehicle (HEV) registrations fell 4.3%, reducing their share to 13.1%.

The SMMT attributed the growth in BEV demand to expanding model choice, manufacturer discounts and the government’s Electric Car Grant.

There are now 178 BEV models available in the UK, more than double the number in 2023. Combined with more than 110 PHEV and 50 HEV models, electrified vehicles now account for more than three-quarters of new car models available.

Despite September’s record performance, the industry remains behind the trajectory required to meet the government’s Zero Emission Vehicle mandate.

A total of 454,947 new BEVs were registered during the first nine months of 2026, giving them a year-to-date market share of 26.2%. This remains below both last year’s 28% mandate target and the 33% target for 2026.

Based on the latest industry outlook for a 2.183 million-unit new car market this year, the SMMT estimates that achieving a 33% BEV share would require an additional 265,000 electric car registrations during the final quarter.

The organisation said the forthcoming review of the mandate provides an opportunity to align regulation more closely with market development while supporting investment, jobs and the transition to zero-emission vehicles.

“Drivers are increasingly embracing the growing choice of models made available and high fuel prices are also undoubtedly giving more consumers reason to consider going electric.

“The industry’s commitment is clear with billions of pounds of investment in new models, new technology and incentives. Despite all these factors, uptake remains behind mandated targets and, whilst flexibilities help, the UK still has the world’s toughest targets and highest energy costs.

“The Mandate review is an opportunity to review those factors, to build on this momentum and support consumers but, in doing so, strengthen business viability and UK competitiveness.”