The UK new car market recorded its strongest September since 2017, with registrations increasing by 12.1% and fleet and business registrations passing one million for the year.
The September plate-change period delivered a significant boost to the UK new car market, with 350,518 new cars registered during the month, according to preliminary figures from the Society of Motor Manufacturers and Traders (SMMT).
That represents a 12.1% increase compared with the 312,793 cars registered during September 2025 and makes September 2026 the strongest September performance since 2017.
The figures also highlight the increasingly important role being played by businesses and fleet operators, with fleet and business registrations accounting for more than half of all new cars registered during the month. The latest figures build on the strong fleet and business growth seen earlier in 2026, with previous registration data also showing businesses accounting for a substantial proportion of new car demand.
Fleet Registrations Continue To Drive The New Car Market
Fleet and business registrations increased by 10.9% during September, reaching 201,360 vehicles.
That represented 57.5% of all new car registrations during the month.
The figures were made up of 190,988 fleet registrations, which increased by 9.6%, and 10,372 registrations from smaller businesses, which recorded a much larger 37.6% increase.
| Registration type | September 2026 | Change vs September 2025 | Market share |
|---|---|---|---|
| Total new cars | 350,518 | +12.1% | 100% |
| Fleet registrations | 190,988 | +9.6% | 54.5% |
| Smaller business registrations | 10,372 | +37.6% | 3.0% |
| Fleet & business combined | 201,360 | +10.9% | 57.5% |
The growth means the combined fleet and business market has now passed the one-million mark during 2026.
During the first nine months of the year, 1,043,296 cars were registered to fleets and businesses, an increase of 8.5% compared with the 961,150 recorded during the same period in 2025.
Fleet registrations alone are up 8% so far this year, while registrations from smaller businesses have increased by 22.9%.
This means business demand continues to represent a substantial proportion of the UK’s new car market.
For companies reviewing their vehicle requirements, business car leasing provides access to a wide range of cars without requiring the business to purchase vehicles outright.
Private Car Registrations Are Also Growing
The increase in business demand has come alongside stronger private registrations.
Private registrations reached 695,957 during the first nine months of 2026, representing a 12.8% increase on the same period last year.
| Market | January–September 2026 | Change vs January–September 2025 | Approx. market share |
|---|---|---|---|
| Fleet & business combined | 1,043,296 | +8.5% | 60.0% |
| Private registrations | 695,957 | +12.8% | 40.0% |
Fleet and business registrations therefore continue to account for around 60% of the UK’s new car market during the first nine months of 2026.
The proportion is slightly lower than the 60.9% recorded during the same period last year, but the underlying number of fleet and business registrations has continued to increase.
The figures also underline the importance of business and fleet demand when manufacturers and leasing providers assess the direction of the UK new car market.
September Delivers Record Electric Car Registrations
One of the biggest developments in the latest figures was the continued growth of electric vehicles.
Electrified vehicles accounted for 58.4% of all new car registrations in September, with battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) both recording particularly strong growth.
| Powertrain | September 2026 registrations | Change vs September 2025 | September market share |
|---|---|---|---|
| Battery electric (BEV) | 99,199 | +36.3% | 28.3% |
| Plug-in hybrid (PHEV) | — | +55.7% | 17.0% |
| Hybrid electric (HEV) | — | -4.2% | 13.1% |
| All electrified vehicles | — | — | 58.4% |
Battery electric car registrations increased by 36.3%, with 99,199 new BEVs registered during the month.
That gave fully electric cars a 28.3% share of the September market and represented a record monthly volume.
The SMMT has attributed the strong performance to factors including the growing range of electric models, manufacturer incentives and the Government’s Electric Car Grant.
The number of electric cars now available in the UK has also increased considerably, giving both private motorists and businesses more choice when replacing existing vehicles.
Plug-In Hybrids Also See Strong Growth
Battery electric vehicles were not the only electrified powertrain to record significant growth during September.
Plug-in hybrid registrations increased by 55.7%, giving PHEVs a record 17% share of the September market. The strong PHEV performance is also relevant to company car fleets, where the relationship between electric range and Benefit-in-Kind taxation remains an important consideration. Our guide to PHEVs and BIK in 2026/27 explains how the current tax treatment works.
Hybrid electric vehicles (HEVs), by comparison, fell by 4.2%, reducing their share of registrations to 13.1%.
The figures demonstrate how quickly the balance between different powertrains is changing.
Businesses now have considerably more choice when selecting vehicles for company car schemes and fleet replacement programmes, with fully electric, plug-in hybrid, hybrid, petrol and diesel models all continuing to play a role.
For businesses comparing different powertrains, our guide to BEV, PHEV, HEV and ICE vehicles explains the differences between the various technologies.
More Than 450,000 Electric Cars Registered In 2026
The growth in September has pushed total BEV registrations for the first nine months of the year to 454,945.
That gives electric cars a 26.2% share of the UK new car market so far in 2026.
Despite the strong September performance, BEVs account for 26.2% of new car registrations so far in 2026, compared with the 33% ZEV Mandate requirement for manufacturers.
The SMMT estimates that around 265,000 additional BEVs would need to be registered during the final three months of the year for the market to reach a 33% share, based on its forecast of a 2.183 million-unit full-year market.
The gap between current registrations and the target remains an important issue for manufacturers and the wider automotive industry.
The Government is currently carrying out an early review of the ZEV Mandate, with the consultation considering whether the existing annual targets remain appropriate.
Our ZEV Mandate Review 2026 guide looks at the current targets, the review process and what the changes could mean for businesses and fleets.
Electric Vehicle Choice Continues To Expand
The number of electric models available to UK motorists has increased significantly in recent years. The SMMT says there are now more than 170 battery electric models available in the UK, with the number of BEV models having more than doubled since 2023. Our analysis of EV choice in the UK looks at how quickly the available range has expanded.
There are also more than 100 plug-in hybrid models and more than 50 conventional hybrid models available.
For fleet operators, the increase in choice is particularly significant.
Electric vehicles are no longer limited to a relatively small number of body styles and vehicle types. Businesses can now consider electric hatchbacks, SUVs, saloons, estates and other models for different driver requirements.
This means the decision to introduce electric vehicles into a fleet can increasingly be based on how individual vehicles are used rather than simply whether an electric alternative exists.
Our guide to switching to an electric vehicle covers some of the practical considerations businesses should look at when moving towards electrification.
If you’re comparing electric cars for company use, our guide to the Top 10 Electric Cars to Lease in 2026 looks at a selection of models available to private drivers, company car users and salary sacrifice customers.
Fleet Buyers Have An Important Role In EV Adoption
The strength of fleet registrations is particularly relevant as the UK continues to increase the proportion of new cars that are electric. Leasing providers are also becoming increasingly important to this transition, with fleet electrification becoming a more important part of business vehicle replacement strategies
Businesses and fleet operators represent a significant share of the new car market, meaning their vehicle replacement decisions can have a noticeable effect on the overall mix of new registrations.
Company car drivers are also increasingly being offered electric vehicles as manufacturers expand their ranges and businesses review their fleet policies. The scale of the company car market is also highlighted by recent HMRC data on company car drivers.
Electric vehicles are also increasingly being accessed through employee schemes such as EV salary sacrifice, adding another route into the electric car market alongside traditional company car arrangements.
For employers, the decision involves more than simply choosing an electric model.
Factors such as annual mileage, workplace charging, home charging, public charging availability, vehicle range, company car taxation and the requirements of individual drivers all need to be considered.
Businesses also need to consider workplace and home charging, particularly where company cars are regularly taken home by employees. Our guide to electric vehicle charging for UK businesses covers home, workplace and employee charging considerations.
Our company car tax calculator can help drivers estimate their potential Benefit-in-Kind liability based on factors including the vehicle’s P11D value, emissions and powertrain.
Manufacturer Incentives Continue To Support Demand
The SMMT has pointed to manufacturer incentives alongside the increasing availability of electric models and the Electric Car Grant as factors contributing to September’s record EV performance.
This is particularly relevant in the fleet market, where manufacturers and leasing providers continue to offer a growing selection of electric vehicles across different price points.
The increased availability of models also gives businesses more opportunity to match an electric vehicle to the role it needs to perform.
A city-based company car driver, for example, may have very different requirements from an employee regularly covering several hundred miles a week.
Likewise, a fleet replacing several vehicles may need to consider different electric models for different employees rather than adopting a single vehicle across the entire fleet.
What Does The September Market Mean For Businesses?
The latest registration figures underline the importance of business users within the UK new car market.
With more than one million fleet and business cars registered during the first nine months of 2026, companies are responsible for a substantial proportion of new vehicle demand.
That growing responsibility also comes as fleet management becomes more complex, with businesses having to balance vehicle costs, taxation, driver requirements, electrification and changing regulation. Our guide looks at why fleet management is becoming more demanding for UK businesses.
At the same time, the continued growth of electric vehicles means fleet managers have an increasingly wide range of models to consider.
For businesses reviewing their next vehicle, the decision is therefore becoming less about whether electric vehicles are available and more about which vehicles are suitable for individual drivers and how they fit into the wider fleet strategy.
This could involve introducing electric vehicles gradually, replacing certain vehicles with EVs where the driving profile is suitable, or reviewing the entire company car policy as part of a wider fleet lifecycle management strategy.
Businesses also have a choice in how they finance their vehicles, whether that means leasing them for an agreed period, financing them with a view to ownership or purchasing them outright. Understanding the different vehicle finance options can therefore be an important part of planning a new company car or fleet replacement programme.
Our fleet management solutions can help businesses managing multiple vehicles consider their wider fleet requirements.
What Could Happen To The UK Car Market Next?
September is traditionally an important month for the UK new car market because of the introduction of new registration plates.
The strength of this year’s September result provides a positive indication of demand, but the final three months of 2026 will be important for determining the overall performance of the market.
Electric vehicle registrations will also remain closely watched as manufacturers work towards the current ZEV Mandate requirements.
The latest figures show that EV demand is continuing to grow, but the year-to-date share remains below the 2026 target.
The outcome of the Government’s ZEV Mandate review could therefore be another important development for manufacturers, businesses and fleet operators as the year progresses.
A Changing Market For Company Cars And Fleets
The UK new car market is becoming increasingly shaped by business and fleet demand, while the choice of electric vehicles continues to expand.
For companies, this creates both more choice and more decisions to make.
The right vehicle will depend on how it is used, how far it travels, where it can be charged and what the business needs from its fleet. For company car drivers, factors such as Benefit-in-Kind taxation and day-to-day practicality are also important.
As manufacturers continue to expand their electric ranges and the Government reviews the ZEV Mandate, businesses will need to keep their vehicle policies under review.
For many companies, Business Contract Hire is one of the finance options considered when replacing vehicles within a company car or fleet programme. Our guide to business contract hire explains how this type of agreement works for UK businesses.
For companies considering their next vehicle, the vehicle leasing process explains how the process works, from choosing a suitable vehicle and finance option through to application and delivery.
Call our expert team on 
