New car sales remained steady in October as registrations climbed slightly with the help of a surge in electric vehicle demand.
The number of new models snapped up rose by 0.5 per cent year-on-year to reach 144,948 units as EV sales continued to grow, latest figures published by the Society of Motor Manufacturers and Traders (SMMT) on Wednesday show.
Of these, 7,028 were battery electric vehicles, which accounted for 24.5 per cent of passenger car registrations, the second highest market share recorded for electric models this year.
Electrified vehicles as a whole – including hybrid and plug-in hybrids – bucked the sales decline for both traditional petrol and diesel cars, the stats showed.
Overall, EVs and hybrids made up 50.8 per cent of the new car market last month.
Industry and ministers have acknowledged the role of the Electric Car Grant incentive for boosting appetite of EVs, with the Department for Transport hailing ‘another month of record-breaking EV sales’ following the introduction of the scheme in July.
BEVs now hold a 24.5% market share, the second highest recorded this year, after 7,028 new EVs were registered in October
While EV sales are 28.9 per cent up on last year, they are short of the Zero Emissions Vehicle (ZEV) Mandate requirement of a 28 per cent market share in 2025.
It remains to be seen if car makers can adhere to the binding sales targets in the final two months of the calendar and avoid financial penalties for failing to meet the threshold set out by ministers.
At 386,224 total units in the first 10 months of 2025, electric car sales have already surpassed the full-year sales figures achieved in 2024.
the growth in EV sales has been attributed to massive manufacturer investment and the more recent government ECG support.
James Hosking, managing director of AA Cars, said: ‘October’s rise in registrations shows that buyer confidence is returning following a challenging year for the market.
‘Higher borrowing costs, household budget pressures and a hesitant private sector have all weighed on demand in 2025, so the latest uplift – led by EV sales – is a welcome sign of renewed momentum.
‘The Government’s grant scheme has given the sector a timely boost, encouraging more drivers to make the switch to electric and keeping the UK on track towards its zero-emission targets.’
The number of car units snapped up rose by 0.5% to reach 144,948 units as battery electric vehicle (BEV) sales continued to grow, the latest figures from the Society of Motor Manufacturers and Traders (SMMT) show
Overall electrified vehicles, which also includes hybrid and plug-in hybrid vehicles, now make up 50.8% of the market
Plug-in hybrid vehicle uptake rose 27.2 per cent to account or 12.1 per cent of the market, while hybrid (HEV) vehicles posted 2.1 per cent growth to reach 13.3 per of all registrations, the data shows.
Registrations by fleets declined slightly, falling -1.5 per cent, but the decline was offset by a small increase in registrations by private buyers, up two per cent.
Business registrations rose by 32.7 per cent although, as a very small volume portion of the market, this sector is always subject to volatility.
The overall new car market for 2025 will top two million units (2.012 million) for the first time since pre-pandemic 2019, with EVs expected to account for 23.3 per cent of uptake.
The latest quarterly forecasts also predict that for 2026, the overall market is expected to reach 2.032 million units, a moderate improvement on the previous outlook, with the EV outlook maintained at 28.2 per cent.
The SMMT warns that, while this would represent exceptional progress, it 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 EV share anticipated to hit 32.2 per cent against a 38 per cent target.
The overall new car market for 2025 will top two million units (2.012 million) for the first time since pre-pandemic 2019
The SMMT is warning about the risks of the government planning to end Employee Car Ownership Schemes (ECOS) , reducing a crucial supply or new and increasingly ZEVs into the market
With public and industry looking to the government to secure the future of EVs, Transport Secretary, Heidi Alexander praised ‘more families than ever having the confidence to go electric’, saying: ‘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.’
The SMMT though is warning about the risks of the government planning to end Employee Car Ownership Schemes (ECOS) – schemes that ‘play a key role in attracting top talent into UK Automotive, enabling employees to access the products they make and sell in an affordable manner’.
Government plans to make ECOS 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.
Mike Hawes, SMMT Chief Executive, said: ‘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.’