The UK new car market grew by 5.4% to 152,730 registrations in October, marking the 11th consecutive month of growth, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
The expansion was driven largely by a strong performance in , even as automotive industry leaders warn of an expanding gap between market demand and strict government zero-emission targets.
Battery electric vehicles (BEVs) accounted for 32.0% of all new car registrations in October – their highest market share so far this year – while plug-in hybrids (PHEVs) saw a 30.1% increase in sales to claim a 15.0% market share. Combined, electrified vehicles accounted for nearly six in ten registrations during the month.
The surge in BEV uptake reflects intensive efforts by manufacturers to meet annual regulatory targets. Year-to-date, more than half a million BEVs have been registered, representing a 30.4% increase compared to the same period last year.
Automakers have backed this transition with massive investments, committing £14.3 billion to UK EV manufacturing since 2020 to deliver over 180 electric models to the market.
However, the SMMT warns that achieving these registration volumes has come at an unsustainable financial price. Manufacturers have been forced to spend billions on heavy discounts, zero-percent finance deals, and deposit contributions to stimulate sales beyond natural consumer demand.
Analysts project that BEV market share will reach 27.2% this year, falling short of the 33% ZEV Mandate target. Furthermore, the shortfall is expected to widen significantly, with forecasts predicting a 37.5% share by 2028 against a mandated 52% target – more than double the current deficit.
Industry leaders are calling on the government for immediate regulatory reform and long-term policy consistency. Concerns have also been raised regarding recent fiscal measures, such as a proposed EV-specific vehicle excise duty (eVED) from 2028 and plans to retain a 20% VAT rate on public charging while domestic electricity remains VAT-free.
Highlighting the urgency for policy adjustments, Mike Hawes, SMMT Chief Executive, said:
“Almost one in three new cars registered in October was electric – great progress in the transition, but one that comes at enormous cost. The industry and government are spending billions to help drivers switch, but that support cannot be sustained indefinitely with the gap to mandated targets set to more than double by 2028, just as a new EV-only tax is introduced.
“Higher targets may force supply, but they do not create demand. The ZEV Mandate review must deliver substantive reform effective immediately to ensure we have a healthy market and an attractive pitch to investors.”
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