Posted on 07 Nov 2025
The UK new car market saw battery electric vehicle (BEV) registrations grow by 23.6% year-on-year in October, with market share rising to 25.4% – the second highest this year.
Data released by the Society of Motor Manufacturers and Traders (SMMT) on Wednesday shows that 36,830 BEVs were registered in the month, representing an annual growth of 7,028 units and a roughly 5% increase in market share. Year-to-date, the BEV market is up 28.9% at 386,244 units. The volume has already surpassed 2024 sales with two months to go before the year ends, Kallanish reports.
Despite the robust growth compared to other powertrain sales in the UK and BEV registrations in Europe, SMMT expects this year’s BEV uptake to remain below the 28% target set by the government’s Zero-Emission Vehicle Mandate. All-electric models should account for 23.3% of the new car market in 2025. Next year, the BEV penetration rate is forecast at 28.2%.
“While this would represent exceptional progress, it would still fall short of mandated targets for 2026, which call for zero-emission vehicles to comprise one in three new car registrations,” SMMT claims. “The gap is set to widen in 2027, with BEV share anticipated to hit 32.2% against a 38% target.”
The trade body says BEV sales growth has been driven by “massive manufacturer investment,” and recent government support through the Electric Car Grant and trade deals. Yet, it warns against the risks associated with the government’s plans to end Employee Car Ownership Schemes (ECOS), which would make vehicles liable for company car tax.
Currently, around 5% of the UK new car market (around 100,000 units) comes from ECOS annually. The closure of such schemes would result in more than £1 billion ($1.3 billion) lost in revenue, putting 5,000 manufacturing jobs at risk, SMMT claims. “The total cost would be more than double that allocated to the Electric Car Grant, effectively wiping out the growth it is intended to stimulate,” it adds.
“At a time when the Budget should fuel growth, the measure will do the exact opposite. It is time for a rethink,” urges SMMT ceo Mike Hawes.
Overall, October sales remained stable with 144,948 car registrations, with diesel and petrol sales falling by 22.9% and 11.6%, respectively. Meanwhile, plug-in hybrid (PHEV) sales increased 27.2% to 17,601units, and that of hybrids (HEVs) rose by 2.1% to 19,250 units.
Together, electric vehicles accounted for 50.8% of all new car sales last month. Chinese brands continue making headway in the British EV market, with BYD’s sales surging roughly 350% to 3,500 units in October. Tesla, on the other hand, continued losing ground after a 47% decline to 511 registrations. The US EV maker is also facing intense competition from European brands including Polestar, which saw its BEV sales rise 63% in October to 1,250 units.
Source:Kallanish
