UK new car registrations rose for an 11th consecutive month in October as increased battery electric vehicle uptake helped the market grow by 5.4%.
A total of 152,730 cars joined the road during the month, according to the Society of Motor Manufacturers and Traders (SMMT).
Fleet registrations increased by 5.4% to 89,985 and accounted for 58.9% of the market. Private demand rose by 4.1% to 58,229, while registrations to businesses grew by 24.5% to 4,516.
EVs take a third of the market
Battery electric vehicle (BEV) registrations increased by 32.7%, giving the powertrain a 32% monthly share, its highest of 2026.
Plug-in hybrid demand grew by 30.1% to secure 15% of the market. Hybrid registrations fell by 5%, however, while petrol demand declined by 11.6% to 56,876 and diesel registrations dropped by 15.9% to 5,811.
Electrified vehicles collectively accounted for 59% of October registrations.
The SMMT said 503,805 new BEVs had been registered during the first 10 months of 2026, an increase of 30.4% and equivalent to a 26.6% year-to-date market share.
Despite October’s stronger performance, the SMMT said it expects BEVs to finish 2026 with a 27.2% share, compared with the ZEV mandate’s 33% requirement.
Its forecast also puts BEV penetration at 32% in 2027 against a 38% requirement. The gap is then expected to expand to 14.5 percentage points in 2028, when the target rises to 52%.
Dealers face widening EV gap
The SMMT is calling for substantive reform of the mandate and greater flexibility for manufacturers, which have been spending heavily on discounts and other measures intended to stimulate electric vehicle demand.
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.”
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “It is encouraging to see further growth in the new car market, reflecting the resilience of the automotive retail sector and continued demand from consumers.
“As we approach the end of the year, maintaining this momentum will be important. While electric vehicle registrations are progressing, affordability and charging infrastructure remain key considerations for motorists. It is essential that Government continues to support consumer confidence and works with the industry to ensure a sustainable transition into 2027.”
Outcome of government review
Commenting, Philip Nothard, insight director, Cox Automotive, said: “October’s performance reflects a market that remains fundamentally healthy, albeit increasingly reliant on manufacturer support to sustain momentum. EV demand continues to lag the current targets outlined in the ZEV Mandate, so the sector is eagerly awaiting the outcome of the government’s review by the end of the year, hoping for adjustments that ease pressure across the board.
“While economic headwinds continue to influence affordability and purchasing decisions, the sector remains on course to achieve the forecast 2.2 million registrations in 2026, with competitive offers and tactical campaigns likely to continue through the final months of the year as manufacturers pursue both volume and EV objectives.”
John Cassidy, managing director of Close Brothers Motor Finance added: “The latest SMMT new car registration figures for October are encouraging, with continued growth highlighting the resilience of the UK automotive market, despite ongoing economic pressures and affordability challenges.
“This positive momentum reinforces the important role motor finance plays in supporting consumer demand, helping drivers spread the cost of vehicle ownership and giving households greater flexibility when considering their next vehicle purchase.
“Measures announced in the Autumn Budget, including increases to tax-free mileage rates for business drivers, could provide some additional support by helping to offset motoring costs. For lenders, manufacturers and retailers, maintaining accessible and competitive finance options will be key to sustaining market growth and supporting consumer confidence in the months ahead.”
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