UK new car market grows 5.4% in October with electric cars surging

The UK's new car market expanded by 5.4% in October, reaching 152,730 registrations according to the Society of Motor Manufacturers and Traders. This marked the 11th consecutive month of growth. Battery electric cars accounted for 32% of registrations, the highest share so far this year. Manufacturers intensified their efforts to meet annual mandated targets, leading to increased model choices and promotional offers.

Fleet registrations grew by 5.4% to 89,985 units, making up 58.9% of the market. Private demand increased by 4.1% to 58,229 units, with a 38.1% share. Business registrations rose by 24.5% to 4,516 units. Plug-in hybrid and battery electric vehicles were solely responsible for the growth, with plug-in hybrid registrations increasing by 30.1% to capture a 15% market share.

Battery electric deliveries surged by 32.7%. Hybrid volumes fell by 5%, but electrified cars together accounted for 59% of registrations. Over 503,805 battery electric vehicles have been registered this year, a 30.4% increase compared to the same period last year. More than 180 battery electric models are currently available in the market, with an average range of over 300 miles on a single charge.

The Society of Motor Manufacturers and Traders (SMMT) predicts that the battery electric vehicle share will reach 27.2% this year, slightly below the 33% ZEV Mandate target. The share is expected to further rise to 32% this year and 37.5% by 2028, falling short of the 52% required by 2028. The industry is advocating for changes to the targets to better align with demand and full flexibilities throughout the regulation.

The Budget last week announced a new electric vehicle-specific tax from 2028 and proposed regulation to keep VAT on public charging at 20%, while domestic use remains VAT-free.