New car sales in the UK saw a substantial uptick (+5.6%) in Q3 2025, compared with the same period in 2024. As a result, year to date sales are up by 4.2% compared with the same period last year. With just three months of the year remaining, the industry will be hopeful that this momentum will continue, driving positive full-year sales.

The launch of the new ’75’ plate was a major factor in the positive performance seen across the quarter. Double-digit growth in September (+13.7%) more than outweighed declines in August (-2%) and July (-5%). September is typically the second most important month in the calendar for new car sales after March, accounting for around one in seven annual registrations in the UK.

Significantly, September also saw a return to growth amongst private consumers (+8.9%). Despite ongoing economic uncertainty, consumers were enticed to make a major purchase, with ongoing manufacturer discounting and the introduction of the Electric Car Grant providing excellent deals across the sector.

Petrol-powered vehicles remained the most popular choice for consumers, accounting for 46% of all new cars sold during the first nine months of 2025. However, this figure is down by six percentage points compared with the same period in 2024 as sales of both battery electric and hybrid vehicles saw substantial growth in the first half of the year. More than half of all vehicles registered in September were electrified, with battery electric vehicles (BEVs) alone accounting for 23.3% of all new cars sold, making them the second most preferred type of vehicle in the UK.

September saw 72,779 new BEVs registered – the highest ever monthly volume – and with BEVs, now accounting for nearly one in four registrations across the year, growth in the electric market is making strides towards meeting the government mandates on zero-emission vehicles. However, for this momentum to continue, it is imperative that the barriers to adoption are addressed – most importantly access to charging infrastructure for those without off-street parking. Deloitte Consumer Tracker data shows that more than 40% of consumers with access to a charging point would consider buying a BEV as their next vehicle, compared to just 16% for those with no access to a charging point.

Fragmentation in the market

According to Deloitte analysis, the share of the top 10 brands has decreased from 60% to 55% over the past two years, which is lower than the equivalent figure in other European countries. This is also evident in the rise of brands now established in the UK, with more brands consistently selling more than 500 cars per month..Much of this market fragmentation is driven by the gradual switch to electric. Indeed, Deloitte’s annual Global Automotive Consumer Study shows that, as customers switch to electric vehicles, they are also more likely to try different models, potentially reducing the existing market share of some leading brands.

While increased choice is good for consumers, incumbent Original Equipment Manufacturers (OEMs) are facing greater competition as new brands enter the market, especially in the economy or value end of the sector. Consumers are increasingly enticed by in-car software and technology, as well as price and range. This is creating a substantial growth opportunity specifically for Chinese OEMs in the UK, that are able to compete across all three of these categories. With that in mind, for those OEMs that are seeing their market share eroded by new entrants, and that are unable to compete on price, selling the in-car customer experience will be key. At the same time, established OEMs will need to ensure that they optimise their incumbent advantage regarding in-life-management, their existing fleet relationships and the second hand market to shore up residuals and offer better finance deals as a result.

While incumbent OEMs look to minimise the impact of a fragmenting market, we will inevitably still see some structural changes across the sector. For example, an increasing number of dealers are becoming multi-franchise and many new OEMs are exclusively using third-party financing. We are also seeing new OEMs having to invest in supply and repair networks to serve and support their growing car parc. All of which will lead to a substantially different UK car market for the average consumer.

Outlook for Q4 2025

Data from the Deloitte Consumer Tracker shows that the percentage of consumers planning to buy a new car in the quarter ahead fell from 6.7% in Q2 2025 to 5.7% in Q3 2025. This slight downtick is indicative of overall consumer sentiment towards the economy and their attitude to major purchases. However, as Q3 results have shown, increased choice, heavy discounting and savings available through the introduction of the Electric Car Grant can support new car sales across the final three months of the year.