EVs lift UK new car market 13.7% in August

The UK new car market recorded its ninth consecutive month of growth in August, supported by a sharp increase in electric vehicle registrations, although the industry has warned that September will provide a more significant test of underlying demand.

New car registrations increased 13.7% year-on-year to 94,236 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), marking the strongest August since the introduction of the twice-yearly number plate change.

August is traditionally one of the lowest-volume months for new car sales, with many buyers delaying purchases until the September plate change.

Growth was recorded across all sales channels. Fleet registrations increased 10.1% and accounted for 57.2% of the market, while private registrations rose 19.0% to represent 40.8%. Business registrations, which accounted for 2.0% of the market, increased 14.5%.

Electrified vehicles recorded the strongest growth, with plug-in hybrid electric vehicle (PHEV) registrations rising 39.8% and taking a 14.5% market share.

Hybrid electric vehicle registrations increased 26.3%, accounting for 12.7% of the market, while battery electric vehicle (BEV) registrations grew 27.7% to take a 29.8% share.

This was the second-highest monthly BEV share of 2026 so far, although the SMMT noted that August has produced a recurring seasonal spike in electric vehicle market share since 2023, with the month’s relatively low overall registration volumes amplifying percentage movements.

Across the first eight months of 2026, BEVs accounted for 25.6% of new car registrations – a record level but still below the 33% headline target under the Zero Emission Vehicle (ZEV) Mandate.

The SMMT said manufacturers continued to invest heavily and offer significant discounts to stimulate EV demand but warned that targets running ahead of consumer uptake could increase compliance costs and put pressure on residual values.

The industry body welcomed the government’s decision to review the ZEV Mandate, arguing that regulation needs to remain ambitious while better reflecting the pace of consumer demand.

Mike Hawes, SMMT chief executive, said: “August was a bright spot for the new car market and another strong month for electric car uptake, showing that motorists are responding to the huge choice and compelling offers available.

“But August is a low-volume month, so September will be the acid test. The industry is doing everything it can to help drivers switch, but mandate targets must be grounded in the reality of demand.”

“Government’s review is the right move so we can ensure the transition is kept on track, consumer choice protected and the jobs and investment necessary to deliver net zero and economic growth are safeguarded,” he added.

Attention will now turn to September, traditionally one of the UK’s highest-volume months following the introduction of the new registration plate, for a clearer indication of the strength of both the overall new car market and underlying consumer demand for EVs.