September Registrations Reach Highest Level Since 2017
Britain’s new-car market recorded its strongest September in almost a decade, with registrations rising 12% from a year earlier to 350,518 units. This total represents the highest number of new car registrations for the month since 2017, according to preliminary figures from the Society of Motor Manufacturers and Traders (SMMT).
Battery-electric vehicles were the primary driver of this growth. Registrations for battery-electric models increased 36% year on year, reaching 99,199 units. This surge granted electric vehicles a 28.3% share of the total market in September.
The increase in electric vehicle adoption coincided with higher fuel costs and growing uncertainty regarding diesel supplies across Europe. Consumers reassessed the economic viability of conventional vehicles as global oil markets experienced shocks linked to the war involving Iran.
Shifts in Fuel Type Market Share
SMMT data indicates a complex shift in powertrain preferences during September. While electric vehicles surged, registrations for petrol cars declined 6.7%. Hybrid-electric vehicle registrations also fell by 4.2%.
Contrary to the broader trend of electrification, diesel registrations increased 11.5% during the month. However, this monthly rise did not reverse the longer-term decline in diesel popularity. Diesel registrations were down 7% during the first nine months of 2026, leaving diesel with only about 4.5% of the total market share.
Petrol accounted for 41.5% of registrations during the same nine-month period. The latest disruption to diesel markets has been influenced by actions from the United States and Russia affecting global availability. The prospect of further restrictions on U.S. diesel exports has added uncertainty for European consumers and manufacturers.
Chinese Automakers Gain Market Ground
The competitive landscape in Britain’s mature vehicle market is shifting as Chinese automakers compete aggressively on price, technology, and specifications. This expansion beyond China’s domestic market places pressure on European manufacturers to deliver affordable electric vehicles while navigating new geopolitical trade dynamics.
Proposed EU “Made in Europe” provisions could restrict access to incentives for British-built vehicles and exclude them from EU public procurement, creating a potential competitive disadvantage for UK manufacturers. These regulatory hurdles add complexity to the market as global supply chains adjust to shifting political alliances.
In September, this competitive pressure manifested in specific sales data. Chery’s Jaecoo 7 became the UK’s best-selling car, marking a notable breakthrough for a Chinese automotive group in one of Europe’s most mature vehicle markets. In the electric segment, BYD’s Sealion 7 was the best-selling battery-electric model after Tesla’s Model 3 and Model Y.
Policy Targets Under Review
Despite the strong monthly performance, Britain’s electric-vehicle market remains below government targets. Battery-electric vehicles accounted for 26.2% of new-car sales during the first nine months of 2026. This figure falls short of the 33% target set for 2026 and the 28% target established for 2025.
The UK is currently reviewing its zero-emission vehicle targets to ease pressure on manufacturers who face demanding requirements to raise the proportion of zero-emission vehicles in their sales mix. The gap between current performance and policy goals highlights the challenges of accelerating the transition while managing broader economic and supply chain uncertainties.