The UK new car market remained stable in October, despite a slight drop in fleet registrations, as battery electric vehicles drove growth.

Overall registrations rose 0.5% to reach 144,948 units, while battery electric cars rose again to take more than a quarter of the market, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Registrations by larger fleets fell 1.5%, but the decline was offset by a 2.0% increase in registrations by private buyers. Business registrations to sub-25 vehicle fleets rose by 32.7% but this smaller volume sector is always subject to volatility.

Among the different powertrain types, electrified vehicles were the only technologies to record growth and actually comprised the majority of new car registrations for the second consecutive month, taking 50.8% of the market.

Registrations of battery electric vehicles (BEVs) soared 23.6%; equivalent to 7,028 additional units. As a result, BEVs took a 25.4% market share, the second highest recorded this year. That’s still short of the 28% target set by the ZEV mandate, although carmakers have their own individual targets.

Plug-in hybrid vehicle (PHEV) uptake rose 27.2% to account for 12.1% of the market, while hybrid electric vehicles (HEV) posted growth of 2.1% to claim a 13.3% share.

In contrast, diesel demand slumped 22.9%, giving just a 4.8% market share, while petrol registrations fell 11.6%, taking just a 44.4% slice of the new car market pie, compared to 50.5% a year ago.

The uplift in BEV demand is even more apparent when looking at the year-to-date picture. For the first 10 months of 2025, the overall BEV market is up 28.9%, at 386,244 units – more than registered in the whole of 2024 – with two months still to go before the year ends. Across 2025 so far, BEVs now account for 22.4% of all new sales, which the SMMT attributed to “massive” manufacturer investment along with the Government’s Electric Car Grant launched this summer.

Transport Secretary Heidi Alexander said: “Another month of record-breaking EV sales shows more families than ever have the confidence to go electric. Over 30,000 people have saved thousands thanks to our Electric Car Grant and, alongside public charge points hitting 86,000 and more help to install chargers at home, we’re making it easier and cheaper for families to make the switch.”

Latest forecasts show how soaring BEV demand has boosted anticipated sales figures for 2025 and 2026.

The new quarterly industry outlook anticipates the overall new car market for 2025 will top two million units (2.012 million) for the first time since pre-pandemic 2019, with BEVs expected to account for 23.3% of uptake.

For 2026, the overall market is expected to reach 2.032 million units, marking a moderate improvement to the previous outlook, with the BEV outlook maintained at 28.2%. That’s “exceptional progress” but still means BEV demand would still fall short of mandated targets for 2026, which call for zero-emission vehicles to comprise one in three new car registrations. The gap is set to widen in 2027, with BEV share anticipated to hit 32.2% against a 38% target.

The SMMT also called again for action on government plans to end Employee Car Ownership schemes (ECOs). The Government plans to make ECO vehicles liable for company car tax from April 2026. The move was announced in the 2024 Autumn Budget when the Chancellor pledged an end to “contrived car ownership schemes” relating to “loopholes in current arrangements” whereby car manufacturers and dealers enable employees to source a new car at a discounted price before the vehicle is bought back to provide used car stock.

But the SMMT said these schemes play a key role in attracting top talent into the automotive sector by “enabling employees to access the products they make and sell in an affordable manner”.

It added: “Government plans to make ECO vehicles liable for company car tax would lead to the closure of these schemes, putting these vehicles out of reach for most workers and reducing a crucial supply of new and increasingly zero-emission vehicles into the market.”

The industry body said around 100,000 cars are supplied via ECO schemes a year – equivalent to around 5% of the annual new car market – and said the Government plans would “depress growth and seriously impact the nearly new and used markets”.

It went on: “More than £1bn in revenue would be lost to industry and 5,000 manufacturing jobs put at risk, while the Treasury would incur a half-billion pound hit from lost VAT and Vehicle Excise Duty receipts. The total cost would be more than double that allocated to the Electric Car Grant, effectively wiping out the growth it is intended to stimulate.”

Mike Hawes, SMMT chief executive, commented: “The Government has backed the UK automotive sector with EV incentives and global trade deals, helping drive growth and encourage decarbonisation. But scrapping ECOs would undermine that progress – penalising workers, reducing Exchequer income and putting green investment at risk. At a time when the Budget should fuel growth, the measure will do the exact opposite. It is time for a rethink.”

EV support vital to maintain momentum

Industry comment in response to the new figures centred around the need for further EV support to drive sales momentum, particularly among private drivers.

Jon Lawes, managing director at Novuna Vehicle Solutions, said: “Cost and charging remain the biggest barriers to mass EV adoption. While progress is being made, the transition is still fragile. The UK is not yet on track to deliver the 300,000 public chargers needed by 2030, with access still heavily concentrated in London and the South East. For the millions without driveways, charging remains far from straightforward – removing planning barriers to cross-pavement charging is a practical, common-sense step that would make it as easy as parking on your street.

“Affordability is the other key hurdle. Extending grants to more models helps, but most buyers choose used cars, and that market is still overlooked. Without targeted incentives for used EVs and faster commercial charging, adoption across both cars and vans will continue to lag – with van decarbonisation struggling to meet the UK’s 16% ZEV target.”

Nick Williams, managing director transport at Lex Autolease, said: “Momentum in the EV market continues to build, with more drivers recognising the financial and environmental benefits of making the switch.

“October’s figures underline how far we’ve come, and with the Government’s plans to make it simpler and cheaper for drivers to install chargers at home, going electric is easier than ever before.

“To sustain this progress, the industry must keep pace by supporting all parts of the EV market and tackling lingering misconceptions about EV ownership.”

And James Hosking, managing director of AA Cars, had this to say: “Fleet sales remain the backbone of the EV market, but it’s encouraging to see private buyers following suit. Incentives are clearly having the desired effect – bringing more people into the market and helping to offset some of the affordability concerns that have held back growth earlier in the year.

“This strength in the new-car market is also filtering through to the used car sector. As more EVs enter the second-hand market, drivers are benefiting from a wider choice of models at more accessible prices. Our latest Used Car Index shows that many used EVs have become significantly more affordable compared with last year, opening the door for more motorists to go electric without the cost of a brand-new car.”

Finally, Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, remarked: “It’s clear that consumer demand for EVs is there, however sales are being tempered by a lack of charging infrastructure. To ensure a level playing field between EVs and petrol and diesel vehicles, investment in infrastructure is still needed so that this is not a barrier in the wider quest towards net zero. As more EV brands are entering the UK market and consumers have more choice, this is more important than ever.”