The UK new car market roared to its best September in five years on the back of swelling fleet and electric vehicle demand.

A total of 312,887 new cars were registered last month, preliminary figures from the Society of Motor Manufacturers and Traders (SMMT) reveal. The performance was the strongest for the crucial ‘new numberplate’ month since September 2020 which, despite lockdown restrictions, remains the best so far this decade.

Growth was up across all sectors but the highest volumes by far were among fleets, where demand rose 16.9% to 174,335 units, in contrast to the decline seen in recent months. Private consumer demand was up 8.9% to 131,000 units, while ‘business’ registrations to fleets with fewer than 25 vehicles rose 28.6% to reach 7,552 deliveries.

More than half (50.8%) of all new vehicles registered during the 75-plate month were electrified.

Battery electric vehicle (BEV) uptake grew by 29.1% to 72,779 registrations – the best month on record for BEV volumes and accounting for 23.3% of the market.

Plug-in hybrids (PHEVs) were the fastest-growing powertrain, rising 56.4% to take a 12.2% market share, while hybrid electric vehicles (HEVs) were up 23.5% and accounted for 15.3% of deliveries.

The September plate-change typically accounts for around one in seven annual registrations – and last month’s strong performance offers a welcome boost after a summer slowdown.

Year-to-date, the sector is up 4.2%, with the fleet sector up 3.8%, while BEV demand is up 29.1% to comprise more than one in five (22.1%) new cars registered so far in 2025.

The SMMT said September’s bumper results were driven by manufacturer investments and model choice, complemented by the new Electric Car Grant.

Mike Hawes, SMMT chief executive, said, “Electrified vehicles are powering market growth after a sluggish summer – and with record ZEV uptake, massive industry investment is paying off, despite demand still trailing ambition. The Electric Car Grant will help to break down one of the barriers holding back more drivers from making the switch – and tackling remaining roadblocks, by unlocking infrastructure investment and driving down energy costs, will be crucial to the success of the industry and the environmental goals we share.”

Those posting big gains included BYD, which sold 11,271 cars in September – representing a substantial rise of 880% compared to the same month last year and overtaking legacy brands such as Renault and SEAT.

This brings BYD UK’s sales for the third quarter to over 16,000, compared to 10,000 in the second quarter of this year, with total 2025 sales to just over 35,000. The Chinese giant has already achieved 2% new car market share in only two years and the company’s total market share in September grew even stronger to 3.6% and now sits at 2.2% year-to-date.

The Seal U DM-i SUV continues to lead BYD’s sales charts and is the UK’s best-selling PHEV year-to-date.

BYD was also the UK’s second best-selling brand for pure electric sales in September.

Meanwhile, Omoda&Jaecoo UK has achieved its strongest performance to date, surpassing 10,800 combined registrations (10,812) in September. The milestone comes a little over a year after Omoda entered the UK market – and only eight months since the launch of Jaecoo UK.

Geoff Hurst, senior director for automotive advisory at NTT DATA UK&I, said: “While it is promising to see growth in electric car registrations in September, which is at its highest for this month since September 2020, it also does not come as a surprise giving the rapidly developing nature of this market. What’s most significant is the cause of this rise in EV sales, which is down to the emergence of new market challengers.

“With BYD entering the UK’s top ten most sold cars of the month for the first time, and Jaecoo making its second appearance after ranking as the 6th most registered car in August, we’re seeing clear evidence of Chinese brands starting to disrupt the current market. Their combination of competitive pricing and improving quality is resonating with UK buyers, who are typically less brand loyal and more motivated by value.

“This shift should serve as a wake-up call to established manufacturers in the UK. As Chinese brands build credibility and scale, the market will only get more competitive and engaging in a pricing war will not be sustainable. Premium brands need to focus on building loyalty and delivering greater value through customer experience, innovation and service in order to keep pace, or else they risk losing greater market share to these new Chinese challenger brands.”

On the European brand front, Volvo saw its best September on record with new car registrations up +23% vs September 2024. The XC40 was the most popular model for the brand in September while the UK became the largest market globally for sales of the all-electric EX30.

The Swedish brand also strengthened its market position with a share of 3.7%, the highest September ever recorded for the carmaker. YTD, Volvo’s market share in the UK is at 3.28%.

Cupra also celebrated its best-ever September sales results since tracking began in 2016. The brand reported 6,062 sales in September, a 28.8% increase compared to the same period last year, which saw 4,706 units sold. This figure presents a significant milestone for SEAT and Cupra, capturing an overall market share of 3.2%.

A market in transition

Jon Lawes, managing director at Novuna Vehicle Solutions, said the figures show the UK market is clearly in transition.

“EVs are taking a larger share even as overall volumes fluctuate, charging rollout is accelerating past 85,000 devices, making infrastructure concerns less of an issue. The biggest risks are on affordability and certainty. What the market needs now is policy consistency and a pragmatic stance on import tariffs. The ZEV mandate must go hand-in-hand with industrial strategy – otherwise we hit the numbers but lose domestic capacity. Keep policy steady, keep costs predictable, and demand will follow.”

Russell Olive, UK director at charging management software company Vaylens, said: “September’s rise in new vehicle registrations shows a shiny new ‘75’ plate still has pulling power.”

He added: “Some potential buyers have been motivated by the Government’s EV discount scheme. However, it’s businesses that are the driving force behind electrification. That’s despite rising insurance costs, grid capacity limits at depots, and unpredictable public charging costs.

“Buying a new EV isn’t the hard part of electrification for a business. The hard part is knowing which parts of the fleet are ready now, and where the risks are. For example, we often see businesses surprised by the extra costs of upgrading grid connections or managing payload limits once heavier EVs are introduced. To keep progress going, companies need support with careful fleet analysis, practical infrastructure planning, and the right software to manage charging and energy across sites.”

But Susan Wells, director of EV & solar at Hive, warned that charging infrastructure is failing to keep pace with rising EV take-up.

“Our Hive Home Report shows nearly half of drivers tell us their area doesn’t have enough charge points, underlining the need for the Government to adopt a more forward-looking approach to ensure the UK’s roads and infrastructure are EV-ready.

“Collaboration will be key – not only with councils and local authorities, but also with charger manufacturers and installers – to create the robust charging network needed to support and encourage the future of sustainable travel.”