UK new car registrations rise again as new plate month boosts sales

Maria Bengtsson, EY UK & Ireland Mobility Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for September 2026:

“UK new car sales rose for a tenth consecutive month in August, with a 12.1% year-on-year increase to 350,518 units. September being a new plate month provided a further boost to sales, which have seen strong growth in recent months despite a backdrop characterised by geopolitical disruption, muted economic growth, subdued consumer confidence and a challenging regulatory backdrop for automakers.

“The UK’s transition towards cleaner and greener transport is showing no signs of slowing, with Battery Electric Vehicle (BEV) registrations recording a significant 36.3% year-on-year increase to 99,199 units, albeit year-to-date market share fell slightly to 28.3%, down from 29.8% the previous month. BEV market share in the UK is still some way behind the 33% Zero Emissions Vehicle (ZEV) Mandate target for 2026, but with the ongoing consultation, regulatory compliance could become a more realistic prospect soon.

“The top selling model last month was from a Chinese automaker with 10,813 registrations, while two other Chinese models were in the top five best-selling BEVs, as Chinese manufacturers continue to make inroads in the UK market, providing legacy European and British automakers with a challenging outlook. It remains to be seen what impact potential tariffs on Chinese vehicles imported into the UK, along with the European Union’s ‘Made in Europe’ legislation, could have on future sales trends.

“Alternative powertrain technologies continue to appeal to buyers, with Plug-in Hybrid Electric Vehicles (PHEVs) seeing further growth last month (up 55.7% year-on-year), while hybrids saw a 13.1% year-on-year uptick. In contrast, petrol sales fell year-on-year (-6.7%), but diesel registrations reversed the recent trend, recording an 11.5% year-on-year rise. Internal Combustion Engine (ICE) vehicles are expected to continue seeing sales decline going forward as diesel prices rise significantly amid geopolitical disruption and the UK’s electric transition ramps up further.”

Retail sales see further substantial growth in boost to profitability

“Retail sales saw another month of strong growth in September, with a 13.9% year-on-year uptick to 130,955 units – another boost to profitability for automakers. Meanwhile, fleet sales also continued to progress last month, recording a 9.6% rise.”