UK new car sales rise 12% in September as EVs and Chinese brands gain ground

Oct 2 (Reuters) - Britain's new car registrations rose 12% in September from a year earlier to their highest level for the month since 2017, helped by strong demand for electric vehicles, according to preliminary data from a trade body on Friday.

Electric vehicles have been gaining ground in Europe as rising fuel costs, largely driven by global oil shocks from the Iran war, steered customers toward alternatives.

Battery EV registrations rose 36% year-on-year to 99,199 units in September, accounting for 28.3% of the market, the Society of Motor Manufacturers and Traders said.

In contrast, petrol car registrations fell 6.7% and hybrid EV registrations slipped 4.2% last month, the data showed.

The global auto industry has also had to contend with a hit to diesel supply due to the US war with Iran and a Russian ban on exports after Ukraine damaged many of its refineries.

There is also growing pressure on Europe as US President Donald Trump considers a potential ban on US diesel exports.

Diesel registrations in the UK rose 11.5% in September, although they are down 7% in the first nine months of 2026, with a shrinking market share of about 4.5% this year.

Petrol cars still hold the biggest share at 41.5% in the first nine months.

Britain is reviewing its zero-emission vehicle targets to ease pressure on carmakers, but the industry faces a further challenge from the EU's proposed "Made in Europe" provisions, which threaten to deny British-built vehicles incentives and exclude them from EU public procurement.

The UK auto sector has also seen Chinese brands expanding quickly.

Chery's Jaecoo 7 was September's best-selling model in the UK, according to SMMT, while BYD's Sealion 7 was the best-selling BEV after Tesla's Model 3 and Model Y.

BEVs accounted for just 26.2% of sales so far this year, well below the 33% mandated for 2026 and even behind the 28% target for last year.

Overall car registrations in the UK rose to 350,518 units last month, preliminary data showed.

(Reporting by Nithyashree R B in Bengaluru; Editing by Mrigank Dhaniwala, Sherry Jacob-Phillips and Louise Heavens)