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New car market sees best September performance since 2020

The UK new car market delivered its strongest September since 2020, with registrations rising 13.7% to 312,891 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

The traditionally busy ‘new numberplate’ month gave a welcome boost to the industry after a slower summer, marking a key moment for the sector’s recovery and transition toward electrification.

Growth was recorded across all market sectors. Fleet sales led the charge, up 16.9% to 174,336 units, while private registrations rose 8.9% to reach 131,003.

Business registrations also saw a strong increase of 28.6%, totalling 7,552 new vehicles.

In total, year-to-date registrations are now 4.2% higher than in 2024, reflecting a steady but determined recovery across the market.

For the first time, more than half (50.8%) of all new vehicles registered in September were electrified.

Plug-in hybrids (PHEVs) recorded the fastest growth, up 56.4% to take 12.2% market share, while hybrid electric vehicles (HEVs) accounted for 15.3% of all deliveries.

Battery electric vehicles (BEVs) also continued their upward trajectory, rising 29.1% year-on-year with 72,779 registrations, the best month on record for BEV volumes.

Electric cars now account for 23.3% of the new car market, supported by a wider model choice, competitive manufacturer pricing, and the introduction of the Electric Car Grant, which has helped stimulate demand in key segments.

The SMMT notes that around a quarter of available BEVs qualify for the grant, and these models saw uptake grow faster than the overall EV market.

While the September results show strong progress, the SMMT cautions that private BEV demand remains below expectations, with fewer than one in four (24.5%) registrations coming from private buyers so far this year.

The trade body argues that incentives like the Electric Car Grant are essential to address one of the biggest barriers to EV adoption — affordability — but warns that further action is needed.

Mike Hawes, SMMT Chief Executive, commented: “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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