Octopus Electric Vehicles, the EV-only leasing firm, has revealed its top five electric vehicles for Q3 2025, showing the changing face of the UK new car market.

The rankings reveal that the Omoda E5 was Octopus’ most popular model, driven by its unbeatable value and impressively high specification, but European brands came in strong.

Three European brands – Volkswagen, Mercedes-Benz and Renault – dominate the top five, proving they can deliver cars customers want and can compete with newcomers.

The Mercedes EQB, VW ID.3 and the Renault 5 show that European carmakers are listening to drivers and their desire to go electric, while the Model Y also sits in the top five, as Tesla continues to fend off rising competition from Chinese carmakers.

Octopus also reported that drivers are switching to more affordable, cleaner driving “in droves” – fuelled in part by the new Electric Car Grant, which signals strong policy certainty.

Battery-electric vehicles captured 23.3% of new car registrations in September, with more than 70,000 sold, according to SMMT figures, marking the highest-ever monthly volume.

Alvin Castillo, procurement director at Octopus Electric Vehicles, said: “The UK is quickly becoming a real beacon on the global EV stage. The Government’s Electric Car Grant programme has been well-received, and adds comfort to consumers’ decision-making.

“Buyers now have more choice and improved buying power, with EVs increasingly offering better value over combustion equivalents due to drastically improved tech, and then there’s the fuel savings on top. From premium seven-seaters to award-winning hatchbacks, and bold new launches, there’s something here for everyone.”

Octopus Electric Vehicles’ Top Five Most Popular EVs – July to September 2025

1. Omoda E5
2. Mercedes-Benz EQB
3. Volkswagen ID.3
4. Tesla Model Y
5. Renault 5

Upcoming new launches could reshape EV demand though, according to Castillo.

“My eyes are on the Jaecoo J5 EV, following the runaway success of the Omoda E5, this new EV is giving serious Range Rover vibes – but at a fraction of the cost. Expect it to turn heads.

“There’s also excitement around the Geely EX5, from the parent company of Volvo, Polestar and Lotus, which finally lands in the UK this October. It’s a mid-size SUV, priced just over £31,000 but brimming with tech. Heated and ventilated seats, extending leg rest, and even a massage function. That’s luxury at a mainstream price.”

Castillo noted that the new Nissan Micra EV will also be grabbing the headlines.

“The iconic Micra is back, this time as a pure EV. Built alongside the Renault 5, it shares much of the same tech but with a very different design. That means it appeals to a whole new audience.”

Higher new car prices pave the way for new Chinese OEMs

Shoreham Vehicle Auctions (SVA) has also given its analysis of the fast-changing new car market, saying that Chinese brands are fast-making their presence felt, but long-term success will depend on residual values.

Alex Wright, SVA’s MD, said the decision by legacy manufacturers to increase new car prices in line with greater investment in EVs following the Covid pandemic had helped new Chinese OEMs enter the UK market for the first time.

Prices rose across the board by several thousand pounds, which left a price gap of between £25,000-£35,000 in the new car market; now being filled with high-spec, high-value Chinese new cars from a cross-section of brands.

Chinese new car sales have been strong in 2025, and the used cars SVA has seen at auction have sold first-time and made good money.

“In my 35 years of new manufacturers entering the UK, this is the most positive reaction from the market I’ve seen. Most of the dealer networks we work with have taken on Chinese brands and are positive about their futures,” explained Wright.

“Their launch into the UK has coincided with many dealer groups looking for new franchises as OEMs look to streamline their networks.”

Generally, it takes between eight and nine years to establish a new brand in the UK used market so the first used cars coming into the market help shape future residual values and help dial monthly lease rates down or up.

“The challenge for the Chinese newcomers is to establish strong residual values to support the competitiveness of their monthly finance rentals. Early signs are that residual values are strong just as a number of ex-rental cars are set to enter the used market.

“If the manufacturers collaborate with their dealers to shift these ex-rental cars into the retail market at sensible prices it will further support their quest to establish strong residuals. The market should welcome these cars due to its overall shortage of stock.

“Overall, the only challenge for the Chinese is if politics works its way into the automotive industry like it did with Tesla which affected sales and brand equity with consumers,” he summed up.