Sales of new electric cars reached a record high last month, figures show.

Industry body the Society of Motor Manufacturers and Traders (SMMT) said 72,779 pure battery electric new cars were registered in the UK in September, up 29.1% from the same month in 2024.

The SMMT said this was partly driven by the Department for Transport’s (DfT) electric car grant, which “provided added impetus in certain segments”.

It also attributed the rise to discounts by manufacturers and an increasing choice of models.

Pure battery electric new cars took a market share of 23.3% in September, up from 20.5% a year earlier.

Under the Government’s zero-emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year are required to be zero emission, which generally means pure electric.

The overall new car market grew by 13.7% last month compared with September 2024, with 312,887 registrations.

This was the best September performance since 2020.

September is a critical month for the automotive industry as the introduction of new number plates attracts many buyers.

SMMT chief executive Mike Hawes said: “Electrified vehicles are powering market growth after a sluggish summer, and with record Zev uptake, massive industry investment is paying off, despite demand still trailing ambition.

“The electric car grant will help to break down one of the barriers holding back more drivers from making the switch.

“Tackling remaining roadblocks by unlocking infrastructure investment and driving down energy costs will be crucial to the success of the industry and the environmental goals we share.”

September was the first full month when buyers of new EVs could receive grants worth £1,500 or £3,750, depending on sustainability criteria.

The DfT has invested £650 million in the scheme.

Transport Secretary Heidi Alexander said: “Our discounts have sparked a surge in electric car sales, making them cheaper and within reach of more households than ever before.

“By cutting costs for families we’re supporting industry, backing British jobs, and powering up growth.”

A study by green transport research organisation New Automotive published on Friday warned the grants may be a “waste of money” because of a lack of evidence they are “prompting consumers to consider buying cars that they wouldn’t have bought anyway”.

The DfT branded the analysis “incorrect”.

Tanya Sinclair, chief executive of lobby group Electric Vehicles UK, said: “Drivers are switching to electric in their thousands, even as adoption naturally ebbs and flows with seasonality, model launches, economic confidence and charging perceptions.

“What matters most is ensuring consistent growth through long-term consumer education.”

NEW DELHI: On the back of a fillip provided by a reduction in GST on 375 items, Indian consumers flocked to stores and car dealerships resulting in the highest Navratri sales in over a decade, govt officials said, citing industry data.They argued that the move lowered prices, helping families upgrade vehicles, buy white goods and spend more freely on lifestyle products, “turning festive cheer into record-breaking consumption”.GST rates for food items, daily-use products, white goods, cement and automobiles have been slashed as the Centre and the states agreed to reduce the number of slabs and end cess on all luxury and sin products, barring tobacco. Apart from making the indirect tax regime simpler, the idea was to boost consumption, even if it resulted in a temporary impact on tax collections.

Car sales vroom

“By rationalising GST slabs and easing the tax burden on both essential and aspirational items, govt fostered an environment of confident spending. As a result, brands and retailers reported sales growth ranging from 25% to 100%, marking a major boost for India’s consumption-driven economy,” an official said.

GST reset, pent-up demand driving sales over last 10 days

Although companies had complained about an adverse impact on sales after PM Narendra Modi first announced the plan for GST rate rationalisation in his Independence Day speech, collections in Sept – based on transactions in Aug – grew at over 9%, the fastest pace of growth in four months, according to the data released on Wednesday.While goods and services are more affordable, especially after govt nudged businesses to pass on the benefits to consumers, pent up demand is also a factor behind a surge in sales over the last 10 days.As a result, companies such as Maruti Suzuki, the country’s largest carmaker, reported 3.5 lakh bookings with nearly 2.5 lakh pending orders. By the end of Navratri, it was expected to deliver 2 lakh vehicles, 2.3 times last year’s level of 85,000 cars. Similarly, M&M has reported a 60% jump in its top selling XUV700 and Scorpio N sales, while demand for Hyundai’s Creta and Venue are also seen to be strong.In the consumer electronics space, companies and top retailers are reporting significant rise in sales.