The UK new car market recorded a third month of growth in October, with registrations rising by more than a quarter to 134,344 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

Fulfilment of strong order books helped deliver the bounce-back, although the increase follows a particularly disappointing October 2021 when deliveries fell by -24.6 per cent. In the year to date, the market is down -5.6 per cent on the same period in 2021, but still a third below pre-Covid levels.

Growth in October was driven primarily by large fleet registrations, which grew 47.4 per cent to 67,911 units, while those by private buyers rose 7.4 per cent to 62,714. Smaller businesses recorded a 108.6 per cent increase although, at 3,719 units, this is a small segment of the market.

Zero emission capable car deliveries continued to grow in volume, with battery electric vehicle (BEV) registrations increasing by 23.4 per cent to 19,933 and plug-in hybrids (PHEVs) by 6.2 per cent to 8,899. 

However, BEV uptake grew by less than the overall market for the first time since the pandemic, meaning October is the first month to see BEV market share fall year on year since May 2021, primarily attributable to supply challenges.

Deliveries of hybrid electric vehicles (HEVs), meanwhile, rocketed 81.7 per cent to account for more than one in 10 new cars, as supply was prioritised for a raft of popular new models. Overall, electrified vehicles accounted for one in three registrations, while more than a fifth (21.5 per cent) came with a plug.

Ongoing supply chain shortages, surging inflation and a growing cost of living crisis have led to a -2.2 per cent downward revision of the market outlook for the year, with 1.566 million registrations now anticipated. This puts 2022 on course to be the market's toughest year since 1982.3 More positively, demand for electric vehicles is anticipated to result in a plug-in market share of 21.9 per cent.

Overall market recovery is anticipated to continue through 2023, with an outlook of 1.808 million units and plug-ins accounting for 26.7 per cent of registrations next year.

Mike Hawes, SMMT chief executive, said: A strong October is hugely welcome, albeit in comparison with a weak 2021, but it is still not enough to offset the damage done by the pandemic and subsequent supply shortages.

"Next year's outlook shows recovery is possible and EV growth looks set to continue but, to achieve our shared net zero goals, that growth must accelerate and consumers given every reason to invest. This means giving them the economic stability and confidence to make the switch, safe in the knowledge they will be able to charge - and charge affordably - when needed. The models are there, with more still to come; so must the public chargepoints."