The UK new car market saw a 1.0% increase in September, reaching 275,239 units, thanks to heavy discounts on electric vehicles (EVs).
This month marked the best performance since 2020 but still lagged behind pre-Covid levels by 19.8%.
Battery electric vehicle (BEV) registrations hit a record 56,387, a 24.4% increase, making up 20.5% of all new car sales.
However, the year-to-date market share for BEVs only rose from 17.2% to 17.8%, with an expected increase to 18.5% by year-end.
Fleet sales drove much of the BEV growth, while private demand only saw a slight increase. In contrast, diesel vehicle registrations grew by 17.1%, outpacing EV sales.
The Society of Motor Manufacturers and Traders has warned that manufacturers are spending at least £2 billion on EV discounts, which may not be sustainable.
They, along with major car manufacturers, are calling on the government to provide support to encourage EV adoption.
Suggested measures include halving VAT on new EVs, scrapping the upcoming vehicle tax for zero-emission vehicles, and extending business incentives.
