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Daily Newsletter

06 October 2025

Daily Newsletter

06 October 2025

UK car market up 14% in September

Record sales of EVs boosted by Government grant and industry discounting.

David Leggett October 06 2025

The UK new car market rose by 13.7% in September to reach 312,887 registrations, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

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.

All market sectors drove growth, with the biggest increase recorded by fleets, where volumes rose 16.9% to reach 174,335 units. Private consumer demand also rose, up 8.9% to 131,000 units, while business registrations 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. Plug-in hybrids (PHEVs) were the fastest growing powertrain, rising 56.4% to achieve a 12.2% market share, while hybrid electric vehicles (HEVs) comprised 15.3% of deliveries.

Battery electric vehicle (BEV) uptake grew by 29.1%, on par with the growth seen so far this year. With 72,779 registrations it was the best month on record for BEV volumes, accounting for 23.3% of the market, driven by manufacturer discounting and the introduction of the UK Government’s Electric Car Grant (ECG), which provided added impetus.

ECG qualifying models – which comprise about 25% of available BEVs – enjoyed growth in uptake that outpaced the overall electric market.

The SMMT said September typically accounts for around one in seven annual registrations and the strong performance offers a welcome boost after a summer slowdown.

Overall demand year to date is up 4.2%.

GlobalData analyst Jonathon Poskitt says the UK car market outlook remains challenging. “The mood is somewhat cautious on the outlook for consumer demand,” he says. “There is a tightening of fiscal policy in prospect and the UK economic outlook is also clouded by higher than expected price inflation. On the plus side, the government’s ECG incentive, combined with extensive manufacturer discounting, is boosting EV sales.”

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.”

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