EV sales continue to prop up UK’s new car market with 32% growth

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Electric cars lead the way in October but industry warns of gap between demand and Mandate target as year end approaches

MA

Matt Allan

5 November 2026, 11:09 GMT · 4 min read

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Electric cars once again led the new car market in October, recording another strong month of growth.

The latest data from the Society of Motor Manufacturers and Traders (SMMT) shows that 48,858 all-electric cars were registered in October 2026 – a 32% year-on-year increase and the strongest performance of any fuel type.

Plug-in hybrids also enjoyed a strong month, with sales up 30% to 22,898. But petrol, diesel and non-plug-in hybrids all recorded a drop in registrations of between 5% and 16%.

Overall, the strong performance of plug-in vehicles helped the new car market grow by 5.4% compared with a year ago despite the weakness of other fuel types.

More than half a million EVs have been registered so far this year – 30.4% more than the same period in 2025. However, the SMMT has warned that EV registrations still aren’t rising quickly enough to meet the current ZEV Mandate.

It reported that they still only represent 26.6% of the market and are forecast to hit 27.2% by the end of the year – some way short of the 33% set out in the mandate.

It said that without “substantive” changes to the mandate, the gap would widen further in 2027, and predicted a 32% market share against a 38% sales requirement. By 2028, it claims the gap will be 14.5% – 37.5% against a target of 52%

It also criticised the Chancellor’s recent Budget for confirming the new pay-per-mile eVED and failing to cut VAT on public charging, which it said sent mixed messages to drivers.

‘Progress at a cost’

Mike Hawes, SMMT chief executive, said: “Almost one in three new cars registered in October was electric – great progress in the transition, but one that comes at enormous cost.

“The industry and government are spending billions to help drivers switch, but that support cannot be sustained indefinitely with the gap to mandated targets set to more than double by 2028, just as a new EV-only tax is introduced.

“Higher targets may force supply, but they do not create demand. The ZEV Mandate review must deliver substantive reform effective immediately.”

Philip Nothard, insight director, Cox Automotive, also called for changes to the mandate. He said: “October’s performance reflects a market that remains fundamentally healthy, albeit increasingly reliant on manufacturer support to sustain momentum.

“EV demand continues to lag the current targets outlined in the ZEV Mandate, so the sector is eagerly awaiting the outcome of the government’s review by the end of the year, hoping for adjustments that ease pressure across the board.”

‘Don’t shift the goalposts’

However, Melanie Lane, CEO of charging specialist Pod, said more changes to the mandate were unnecessary. She commented: “Even without a major new push for EVs in the Budget, consumers and businesses are still choosing to go electric.

“A 53% year-on-year increase in BEV registrations is a strong sign that underlying demand is there and the market is building momentum. For me, it shows that what really drives the transition is getting the fundamentals right: cost, choice and making electric an easy decision for drivers. The last thing the market needs now is another shifting of the regulatory goalposts by adjusting the ZEV mandate.”

James Hosking, managing director of AA Cars, said the continued growth of the new car market on the back of EV demand gave reasons for optimism and fed into the wider conversation around EVs.

He noted: “The Electric Car Grant, alongside increasingly competitive manufacturer offers, is helping to make the switch more attractive. But the growing interest in electric motoring isn’t limited to brand-new cars.

“Our latest quarterly Used Car Index recorded a 50% year-on-year increase in interest in used EVs, suggesting more motorists are exploring electric cars at a price they can afford.

“A healthy new car market also benefits second-hand buyers. Part-exchanges and former fleet vehicles help replenish used car forecourts, giving motorists greater choice across a range of budgets.”