The UK new car market has recorded its ninth consecutive month of growth and best August since the introduction of the biannual plate change, with new registrations rising 13.7% last month, according to the latest figures published by the SMMT. Some 94,236 new cars joined Britain’s roads in what is typically one of the market’s quietest months of the year as many buyers defer purchases ahead of September’s number plate – year identifier - change.
Growth was recorded across all sales types. Fleet registrations rose 10.1% to account for 57.2% of the market, while private demand grew strongly, up 19.0% on last year to comprise 40.8% of registrations.
Every powertrain except petrol saw growth, but electrified vehicles attracted the fastest gains. Plug-in hybrid electric vehicles (PHEVs) posted the strongest growth, up 39.8% to account for 14.5% of registrations, while hybrid electric vehicles (HEVs) rose 26.3% with 12.7% of the market. Battery electric vehicles (BEVs) increased 27.7% to claim 29.8% of overall uptake. This was the second highest monthly share of the year so far, following a recurring seasonal spike seen every August since 2023 and helped by lower overall volumes amplifying percentage shifts.
BEV uptake in the car market reached 25.6% in the first eight months – a record high, but still significantly below the 33% headline mandate target (under the UK Government’s ZEV Mandate).
SMMT points out that manufacturers are investing heavily and discounting deeply to stimulate demand, but ‘when targets outpace the market compliance costs rise, residual values come under pressure and the business case for future UK investment is weakened’.
The SMMT said the UK Government’s decision to review the ZEV Mandate is an essential next step: not a retreat from decarbonisation but a route to delivering it at a pace consumers can live with and manufacturers can manage, without undermining the jobs, investment and industrial capability needed to make the transition a success.
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.”
