The UK new car market remained broadly stable in October, with registrations up 0.5%, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). However, the industry has warned that government plans to end Employee Car Ownership Schemes (ECOS) could reverse progress and curb EV adoption.
October highlights:
Total new car registrations: up 0.5% to 144,948 units.
Fleet registrations: down 1.5%.
BEV registrations: up 23.6%, adding 7,028 units.
BEV market share: 25.4%, the second-highest this year (below the 28% ZEV Mandate target).
PHEVs: up 27.2%, taking a 12.1% share.
HEVs: up 2.1%, reaching 13.3% of the market.
Electrified vehicles overall: now 50.8% of all registrations — the majority for the second consecutive month.
Year-to-date performance:
BEV registrations have risen 28.9% to 386,244 units, already surpassing 2024’s total with two months to spare.
BEVs now represent 22.4% of all new car sales, supported by strong OEM investment and the Electric Car Grant.
Market outlook:
The new car market is projected to exceed two million units (2.012m) in 2025 — the first time since 2019.
BEVs are forecast to make up 23.3% of demand in 2025, rising to 28.2% in 2026.
However, this remains below ZEV Mandate targets, which require one in three new cars to be zero emission by 2026.
Industry warning:
Plans to scrap ECOS could:
Eliminate around 100,000 cars a year from the market (≈5% of annual registrations).
Cut £1 billion from industry revenue and £500 million from Treasury receipts.
Risk 5,000 UK jobs and slow the shift to low-emission fleets.
SMMT Chief Executive Mike Hawes said the measure would “undermine progress towards decarbonisation and penalise workers,” urging a policy rethink:
“At a time when the Budget should fuel growth, this measure will do the exact opposite. It is time for a rethink.”
With EVs now representing half of all new car sales, fleet operators are being urged to plan strategically amid changing incentives and evolving fiscal policy.
Visit SMMT to download a comprehensive set of October data.