October car market stays steady – New tax policy may threaten decline

Latest UK new registrations at the end of October 2025

• New car market rises 0.5% to 144,948 units as battery electric cars take 25.4% market share.
• The UK new car market remained stable in October as registrations rose 0.5% to reach 144,948 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT).
• Electrified vehicles were the only powertrain technologies to record growth, largely driven by battery electric vehicle (BEV) uptake, registrations of which rose by 23.6%, equivalent to 7,028 additional units. As a result, BEVs took a 25.4% market share, the second highest recorded this year, although still short of the 28% target set by the ZEV Mandate. Plug-in hybrid vehicle (PHEV) uptake rose 27.2% to account for 12.1% of the market, while hybrid electric vehicles (HEV) posted growth of 2.1% to claim a 13.3% share. Combined, electrified vehicles comprised the majority of new car registrations for the second consecutive month, with 50.8% of the market

“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.”

Statistics and commentary from SMMT