UK’s September Car Sales: An Electrified Market in Five Key Points

The UK car market experienced a significant shift in September, driven by a record-breaking performance from electric vehicles. Here is a summary of the month’s developments, broken down into five key points that encapsulate the current state of the industry.
First, sales of electrified vehicles dominated the market. Pure battery electric vehicle (BEV) sales grew by nearly a third, while plug-in hybrid (PHEV) sales expanded by 56%. This combined strength meant that for the first time in a key sales month, more than half of all new cars registered were either fully electric or hybrid, signalling a major consumer trend.
Second, this growth was primarily fueled by a government subsidy. A grant of up to £3,750, which was reintroduced in July, has been identified as the main catalyst. This incentive specifically targets more affordable models by capping eligibility at vehicles priced under £37,000, thereby making EV ownership accessible to a wider audience.
Third, despite the EV boom, the overall market is still in recovery. Total car sales rose 14% to 312,900, the best September since 2020. However, this figure remains substantially below the volumes seen before the COVID-19 pandemic, indicating that economic pressures and the cost of living continue to constrain the market’s full potential.
Fourth, a gap persists between EV sales and regulatory targets. The year-to-date market share for pure EVs stands at 22.1%, which is below the 28% headline target set by the government’s Zero Emission Vehicle (ZEV) mandate. This suggests that further acceleration is needed to meet the year-end goal, although recent policy “flexibilities” may have weakened the mandate’s actual requirements.
Fifth, the future of the key subsidy is uncertain. The grant scheme is limited to the first 400,000 buyers. Given the rapid uptake in September, policy experts are now warning that the program could be fully subscribed and close earlier than originally anticipated, which could impact sales momentum in the coming months.