More new electric cars were registered in the UK in September 2026 than in any month before. SMMT figures published on 5 October show 99,201 battery electric cars joined the road, 28.3% of a market that grew 12.0% to 350,536 cars, the strongest September since 2017. Plug-in hybrids grew even faster, up 55.5% to a record 17.0% share. Behind the headline are three things that matter if you are choosing a company or private car this autumn: more choice, a plug-in hybrid rush that runs into a company car tax change in April 2028, and a government review of the rules that shape electric car supply and pricing, which closes on 23 October.
The September numbers
| Fuel type | September 2026 | Change | Share 2026 | Share 2025 |
|---|---|---|---|---|
| Battery electric | 99,201 | +36.3% | 28.3% | 23.3% |
| Plug-in hybrid | 59,571 | +55.5% | 17.0% | 12.2% |
| Hybrid | 45,839 | -4.3% | 13.1% | 15.3% |
| Petrol | 131,864 | -6.7% | 37.6% | 45.2% |
| Diesel | 14,061 | +11.5% | 4.0% | 4.0% |
| Total | 350,536 | +12.0% |
That is almost five new electric cars every minute, more than double the rate of three years ago, according to SMMT. SMMT puts this down mainly to choice: 178 battery electric models are now on sale, more than double the number in 2023, alongside more than 110 plug-in hybrids and 50 hybrids. SMMT also credits manufacturer discounts and the government's Electric Car Grant. The best-selling car of the month was the Jaecoo 7, ahead of the Tesla Model 3 and the Ford Puma.
September matters more than most months. It is a plate-change month and typically accounts for around one in seven of the year's registrations, so it shows clearly where buyers are heading.
Who is buying
| Buyer | September 2026 | Change | Share |
|---|---|---|---|
| Fleet | 190,998 | +9.6% | 54.5% |
| Private | 149,166 | +13.9% | 42.6% |
| Business (smaller businesses) | 10,372 | +37.3% | 3.0% |
Fleets, which include company cars and leasing, still take more than half of all new cars. Registrations by smaller businesses grew fastest of all, up 37.3%, and private demand grew 13.9%. SMMT says growth across the market is being driven largely by competition between brands, including new entrants, and wider choice, which is drawing in buyers who might otherwise have bought used.
The plug-in hybrid rush and the 2028 tax change
Plug-in hybrids are popular with company car drivers because a long electric range currently earns a low company car tax rate. That changes in April 2028. From the 2028/29 tax year, every car emitting 1–50g/km of CO2 moves to a flat 18%, whatever its electric range. Electric cars rise more gently.
| Type of car | 2026/27 | 2028/29 |
|---|---|---|
| Fully electric (0g/km) | 4% | 7% |
| Plug-in hybrid, 1–50g/km with 70–129 miles electric range | 7% | 18% |
A worked example, using a P11D value of £60,000 for illustration, for a 40% taxpayer:
- Electric: £960 a year in 2026/27, rising to £1,680 in 2028/29.
- Plug-in hybrid with 70–129 miles of electric range: £1,680 a year in 2026/27, rising to £4,320 in 2028/29.
A three or four-year agreement started this autumn will run past April 2028, so the later rate matters as much as today's. Check the exact CO2 figure and electric range of the version you are quoted, because they set its band. Our 2028 plug-in hybrid change article explains what it means for a hybrid ordered now, and our company car tax guide has every band to 2030.
Still short of the target, and the review that closes on 23 October
For the first nine months of 2026, 454,947 new electric cars were registered, 26.2% of the market. Under the Zero Emission Vehicle (ZEV) Mandate, the share manufacturers are required to reach this year is 33%, and SMMT says hitting it would need another 265,000 electric registrations in the final quarter alone. Manufacturers can use flexibilities in the rules, but the gap is one reason electric car supply and pricing can move quickly. Our ZEV Mandate explainer sets out how.
The government opened a review of the Mandate on 14 August 2026. It asks whether the yearly targets for manufacturers remain appropriate and how well the existing flexibilities work. The consultation closes on 23 October 2026. The government has said that new petrol and diesel cars will still be phased out by 2030 and all new cars and vans must be zero emission by 2035. Nothing has changed yet: any change to the targets will come after the consultation, and we will cover it when it does. The Budget on 28 October could also bring changes to motoring taxes.
What it means if you are choosing a car now
- Choice is wide. With 178 electric models on sale, there is likely to be one that fits your mileage, family or business use. Compare several before you settle.
- Look past April 2028. For a company car, judge an electric car or plug-in hybrid on the tax rates across the whole agreement, not just the first year.
- Plan your charging. Home or workplace charging keeps running costs down. VAT on household electricity in Great Britain is 0% until 31 March 2027: what that means for home charging.
- Set a realistic mileage. It sets your contract and, from April 2028, the proposed pay-per-mile charge on electric cars, which is not yet law: what eVED means on a lease.
- Watch the dates. The ZEV Mandate review closes on 23 October and the Budget is on 28 October. Either could change the picture for orders placed later in the year.
If you would like to compare electric cars and plug-in hybrids on your own mileage, term and tax position, call the team on 01752 429950 or request a callback. You can also browse electric car leasing and business car leasing.
Sources: SMMT, Record electric car market powers bumper September, 5 October 2026; Department for Transport, Zero emission vehicle mandate review, 14 August 2026; Department for Transport, Review launched to shape pathway to reach zero emission driving by 2035, 14 August 2026; HMRC, Work out the appropriate percentage for company car benefits (480: Appendix 2); HMRC, Income Tax: company car tax rates 2028 to 2030, 30 October 2024. Worked examples are IVF calculations for illustration. Tax treatment depends on individual circumstances and may change. This is general information, not tax advice.
Intelligent Vehicle Finance is a credit broker, not a lender, and receives a commission from the lender or funder when an agreement completes. A trading style of XLCR Vehicle Management Ltd, authorised and regulated by the Financial Conduct Authority (FRN 315268). Subject to status and availability.
Reviewed by Stacey Smith, Brand Director, Intelligent Vehicle Finance. Last updated: October 2026.