One in three new cars is now electric – this week in motoring
October's new car and van figures landed this morning, and they tell an interesting story: electric cars have hit their highest share of the year, yet manufacturers are still falling further behind the government's targets. Here's what's worth knowing this week if you run a fleet or you're thinking about your next vehicle.
October car sales: electric takes a third of the market
The UK new car market grew 5.4% in October to 152,730 registrations – its 11th month of growth in a row. Battery electric cars did the heavy lifting, up 32.7% to 48,858 and taking 32.0% of all sales (up from 25.4% a year ago). Plug-in hybrids rose 30.1% to a 15.0% share, while petrol fell 11.6%, diesel 15.9% and conventional hybrids 5%.
Fleets remain the backbone of the market, accounting for 58.9% of new cars (89,985, up 5.4%). The best-seller was the Jaecoo 7 (3,412), just ahead of the Ford Puma (3,369) and the Volkswagen Golf. The most popular electric car was the Skoda Enyaq, followed by the Mini Countryman Electric and the Jaecoo 5.
The EV target gap is set to double
Despite October's strong month, electric cars make up 26.6% of new registrations so far this year. The SMMT now expects 27.2% for the full year against a Zero Emission Vehicle (ZEV) Mandate target of 33% – and forecasts the gap widening to 32% against 38% in 2027, and 37.5% against 52% in 2028.
To close that gap, manufacturers are funding big discounts, low and 0% finance, deposit contributions and even free charging. The industry is pressing the government to rewrite the targets as part of its ZEV Mandate review. In the meantime, expect strong EV deals to continue through to the end of the year.
Electric vans: the best October yet
The van market grew for a seventh month running, up 11.4% to 25,510 in October. Battery electric van registrations jumped 58% to 3,369 – the best October on record – taking their year-to-date share to 11.0%. That's progress, but still well short of the 24% the mandate requires for vans this year. The government's Plug-in Van Grant and Depot Charging Scheme remain in place to help businesses make the switch. Pick-ups, meanwhile, are down 52.9% this year following the change in tax treatment for double-cabs.
20% VAT on public charging is now law
From 1 November, the government has written into law that electricity from public and workplace charge points is standard-rated at 20% VAT, settling a long-running dispute over whether a lower rate could apply. Home charging, by contrast, is currently VAT-free. Add in the confirmation at last week's Budget that pay-per-mile Electric Vehicle Excise Duty (eVED) starts in April 2028 – 3p a mile for electric cars and 1.5p for plug-in hybrids – and where and how your drivers charge matters more than ever to running costs.
MPH view
The numbers say the switch to electric is speeding up, but the targets are moving faster still – and that's good news for buyers right now. With manufacturers pushing hard to register EVs before December, year-end electric deals are some of the strongest we've seen, for cars and vans alike. The catch is running costs: with 20% VAT on public charging and eVED arriving in 2028, the drivers who benefit most are those who can charge at home or at a depot. That's worth building into any whole-life cost comparison before you order.
Sources: SMMT – October car registrations, SMMT – van market, GOV.UK – HMRC Brief 13 (2026), EV Fleet World, Fleet News