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UK New-Car Sales Nudge Higher as EVs Take One-Quarter Share in October

SMMT cautions that proposed tax changes to employee car schemes risk slowing EV adoption despite this month's gains.

Overview

  • Official data show 144,948 new cars were registered in October, up 0.5% year on year, with battery electric vehicles taking 25.4% of the market, the second-highest monthly share in 2025.
  • Petrol and diesel registrations fell on the year, while plug-in models accounted for roughly two in five sales and hybrids remained the largest single segment at close to one-third.
  • SMMT raised its 2025 outlook to 2.012 million registrations, the first year above two million since 2019, and projects battery electrics will hold about 23.3% of full‑year sales.
  • The UK’s ZEV mandate requires 28% zero‑emission sales this year, rising to 80% by 2030 and 100% by 2035, with flexibilities and ZEV credit trading enabling compliance across brands.
  • Industry leaders warn that making Employee Car Ownership Scheme vehicles liable for company car tax would likely close the schemes and undermine progress on EV uptake.