UK new‑car market up 5.4% in October, EVs near one‑third

In October 2026, UK new‑car registrations rose 5.4% year‑on‑year, driven by a surge in fully electric models that accounted for almost one‑third of the market. The growth is notable for dealers but the Society of Motor Manufacturers and Traders (SMMT) warns the volume still falls short of the government’s zero‑emission vehicle mandate.

Key takeaways

• New‑car registrations increased 5.4% in October.
• All‑electric vehicles made up nearly one‑third of sales.
• SMMT says registrations remain below the ZEV mandate.

October 2026 market performance

The UK saw a 5.4% rise in total new‑car registrations compared with October 2025. The uplift came despite higher price points across the range, indicating continued consumer demand for fresh stock.

Dealers reported stronger showroom traffic, with many buyers opting to replace older vehicles as part of the post‑pandemic rebound.

Electric vehicles drive the surge

Fully electric models captured almost a third of all new‑car registrations in October, a clear sign of shifting buyer preferences toward low‑emission options.

The growth was supported by an expanding model portfolio and improved charging infrastructure, helping to overcome earlier range‑anxiety concerns.

SMMT warning on ZEV target

The Society of Motor Manufacturers and Traders noted that, despite the increase, total zero‑emission registrations remain below the targets set out in the government’s ZEV mandate.

Industry data shows the shortfall could delay progress on emissions reductions and may prompt further policy incentives.

What this means for dealers

Dealers can capitalise on the momentum by expanding their electric stock and highlighting government incentives that lower the effective purchase price for customers.

However, they should also manage expectations, as the current registration levels still lag behind regulatory goals, potentially affecting future compliance requirements.

Frequently asked questions

Why did the October market grow despite higher vehicle prices?

Consumer confidence recovered after the pandemic, and many buyers chose to upgrade older, less efficient cars. Dealerships also offered attractive finance packages, which helped offset the impact of higher sticker prices and sustained demand.

What impact does the EV share have on dealer inventory planning?

With electric models approaching one‑third of new‑car sales, dealers need to ensure sufficient EV stock, training for technicians, and charging solutions on site. Balancing traditional and electric ranges will be key to meeting varied customer preferences.

How close is the UK to meeting the ZEV mandate?

According to the SMMT, registrations are still below the government’s zero‑emission target. The shortfall suggests more aggressive incentives or regulatory adjustments may be required to achieve the mandated levels in the coming years.