The UK new car market remained broadly stable in October, with registrations up just 0.5% year on year to reach 144,948 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).
While overall growth was modest, the story beneath the surface continues to be one of accelerating electrification and growing concern that government policy could soon stall progress.
Fleet registrations dipped slightly by 1.5%, but this was offset by a 2.0% rise in private registrations, while business registrations saw a sharp 32.7% jump (though this remains a small share of total volume).
Electrified powertrains were once again the only technology category to record growth.
Battery electric vehicle (BEV) registrations rose 23.6%, adding more than 7,000 extra units compared with October 2024.
BEVs claimed a 25.4% market share, the second highest so far this year, though still short of the 28% Zero Emission Vehicle (ZEV) Mandate target.
Plug-in hybrids (PHEVs) also saw healthy gains, up 27.2%, while hybrids (HEVs) grew by 2.1%.
Combined, electrified vehicles made up over half (50.8%) of all new car registrations for the second month in a row — a major milestone in the ongoing shift to zero emission mobility.
Despite October’s steady numbers, year-to-date BEV registrations are up 28.9%, reaching 386,244 units, already surpassing the total number registered in the whole of 2024, with two months still remaining.
BEVs now represent 22.4% of all new car sales, supported by major manufacturer investment and continued government backing through the Electric Car Grant.
Looking ahead, industry forecasts predict the new car market will exceed two million units in 2025, the first time since before the pandemic.
BEVs are expected to account for 23.3% of sales next year and 28.2% in 2026 strong progress, but still short of mandated targets requiring 33% of new cars to be zero emission by 2026 and 38% by 2027.
However, industry leaders warn that even this steady EV growth could be derailed by the government’s proposal to end Employee Car Ownership Schemes (ECOS).
These schemes currently account for around 100,000 cars a year, roughly 5% of the total new car market, and are seen as vital for attracting skilled workers into the UK automotive sector.
They also provide a key channel for getting new, low- and zero-emission vehicles into the hands of drivers.
If ECOS vehicles become liable for company car tax, many schemes could shut down, pushing these vehicles out of reach for employees and reducing demand across the market.
The SMMT estimates such a move could cost the industry £1 billion in lost revenue, threaten 5,000 manufacturing jobs, and reduce Treasury income by around £500 million, more than double the amount allocated to the Electric Car Grant itself.
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.”
Why it Matters
The shift toward electrified vehicles is reshaping the service and repair landscape faster than ever. With more than half of new cars now carrying some form of electrification, workshops that invest in EV training, equipment and safety protocols will be best positioned to serve this growing customer base.
However, any slowdown in EV uptake, driven by policy uncertainty or reduced fleet turnover, could also mean slower growth in the used EV market, delaying the point when more affordable electric models start appearing on independent workshop ramps.
