A record-breaking number of British drivers opted for electric cars in September, spurred on by the reintroduction of government grants that have made environmentally friendly vehicles more accessible. This surge in demand marks the most significant month for the UK car market, indicating a pivotal shift in consumer behaviour towards greener transportation, directly influenced by financial incentives. The transport secretary, Heidi Alexander, celebrated the success, stating the discounts have sparked this surge and put electric cars “within reach of more households than ever before.”
The preliminary figures are compelling, showing battery electric vehicle (EV) sales climbed by nearly a third compared to the same period last year, reaching 72,800 units. The growth in plug-in hybrids was even more dramatic, with sales jumping by an astonishing 56% to 38,300. This combined enthusiasm for electrified options—both pure electric and hybrid models—meant they captured more than half of the entire car market in September, a landmark achievement for the sector.
The government’s grant, worth up to £3,750, was reinstated in July following considerable lobbying from car manufacturers. However, the incentive is not universally available. It applies to only about a quarter of the battery cars on the market, subject to a price cap of £37,000. Additionally, stringent rules concerning manufacturing emissions effectively exclude many newer Chinese brands from the scheme, benefiting established players like Citroën, Renault, and Nissan.
This boost in green vehicle sales contributed to an overall market uplift of 14%, with 312,900 new cars registered. While this represents the strongest September performance since 2020, the industry still faces headwinds. Sales figures remain significantly below the levels seen before the coronavirus pandemic, as ongoing cost of living pressures continue to squeeze household budgets, making large purchases a difficult decision for many.
Looking ahead, the industry is focused on the zero-emission vehicle (ZEV) mandate, which sets ambitious targets for electric sales. Despite the recent boom, the year-to-date market share for electric cars stands at 22.1%, still shy of the 28% headline target. The high uptake of the current grant scheme, which is limited to the first 400,000 buyers, has led policy experts to suggest it may need to close earlier than planned, potentially impacting future sales momentum.