Maria Bengtsson, EY UK & Ireland Mobility Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for September 2025:

“UK new car registrations increased in the new plate month of September, with a 13.7% year-on-year rise to 312,891 units, rebounding from two consecutive months of decline in July and August. Battery Electric Vehicle (BEV) registrations made a significant contribution to the growth, with a 29.1% year-on-year uptick. BEVs accounted for 23.3% of market share in September, down from 26.5% in August and still below the 28% Zero Emissions Vehicles (ZEV) Mandate target. This highlights the magnitude of the challenge facing automakers in increasing the share of BEVs they sell, despite their increase in popularity in recent months.

“Plug-in Hybrid Electric Vehicle (PHEV) sales continued to build momentum with further growth in September (56.4%), following a particularly substantial rise in August – another signal that the UK is increasingly prioritising cleaner powertrain technologies when purchasing vehicles. Hybrid sales also saw solid growth (23.5%), while petrol sales eked out a modest 2.4% year-on-year rise. However, diesel sales continued their downward trajectory, with a 28.2% decline.

“September’s increase in vehicle sales, bolstered by the new plate, is welcome news for the UK automotive sector, but the figures cannot mask the underlying pressures facing automakers, with persistent economic headwinds and downbeat consumer confidence continuing to stifle growth prospects. Meanwhile, the knock-on effect of the recent, well-documented cyber-attack on a major manufacturer is likely to have a downside impact on registrations growth, at least in the short-term.”

Fleet and retail sales both rise in September

Maria added: “Retail sales continued their recent recovery in September with an 8.9% year-on-year rise following a difficult 2024, with registrations seeing growth for the fourth time in six months. Meanwhile, fleet sales also saw a return to growth with a 16.9% year-on-year rise, in contrast to the decline seen in recent months. Grants to subsidise BEVs, the consistent rise in BEV sales seen in recent months, and the increasing popularity of PHEVs are all positive signs for the sector, and could prove crucial sources of support going forward.”