The UK’s new car market held steady in October 2025, rising slightly by 0.5% to 144,948 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). While fleet registrations dropped by 1.5%, increased demand from private buyers (+2.0%) and businesses (+32.7%) kept the market moving.
Battery electric vehicle (BEV) registrations increased by 23.6%, with an extra 7,028 units, giving them a 25.4% share of the market, the second-highest level recorded this year. Plug-in hybrids (PHEVs) also grew strongly (+27.2%), while hybrid electrics (HEVs) crept up by 2.1%. Overall, electrified vehicles accounted for 50.8% of all new registrations, meaning October was the second consecutive month they’ve held a majority share.
With two months of the year still to go, 2025 has already surpassed 2024’s total BEV sales, reaching 386,244 units so far. This is a 28.9% increase year-to-date. Government incentives, such as the Electric Car Grant, and ongoing manufacturer investment have been key to this surge (no pun intended).
Looking ahead, the industry expects the total new car market to exceed two million units this year, which will be the first time since 2019. BEVs are forecast to make up 23.3% of that figure. In 2026, the market is expected to grow slightly to 2.032 million, with BEV share rising to 28.2%. However, that’s still short of the ZEV Mandate’s requirement of 33% for that year. Looking ahead even further, the gap will widen in 2027, when BEV sales are projected to reach 32.2% against a 38% target.
These projections are certainly not guaranteed either. This is partly due to the government’s proposal to scrap Employee Car Ownership Schemes (ECOS). These currently deliver around 100,000 cars a year, roughly 5% of the market, and are a key route for employees to access new and increasingly electric models. Making ECOS vehicles subject to company car tax would likely shut down these schemes, placing pressure on both new and nearly-new car markets.
According to SMMT, this could strip more than £1 billion from industry revenue, cost the Treasury £500 million in lost tax receipts, and put 5,000 manufacturing jobs at risk. Effectively, it could undermine the EV growth that current incentives aim to support.
“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.”
Mike Hawes, SMMT Chief Executive
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