(Sharecast News) - UK new car registrations rose sharply in August as demand for electric and hybrid vehicles strengthened, industry data revealed on Friday, although September is expected to provide a more meaningful test of underlying demand.

According to the Society of Motor Manufacturers and Traders (SMMT), registrations increased 13.7% year-on-year to 94,236 units, marking a ninth consecutive month of growth and the strongest August since the introduction of the biannual number plate change.

Private registrations jumped 19.0%, while fleet demand rose 10.1%. Business registrations, which account for a much smaller part of the market, increased 14.5%.

Electrified vehicles recorded the strongest growth. Plug-in hybrid registrations surged 39.8%, battery electric vehicle sales rose 27.7%, and hybrids increased 26.3%.

BEVs accounted for 29.8% of the market during August, their second-highest monthly share of 2026, although the SMMT noted that August is traditionally a low-volume month and therefore tends to exaggerate percentage movements.

At the same time, petrol registrations fell 3.5% compared with last year, while diesel sales rose 4.0%.

Across the first eight months of the year, total new car registrations were up 9.8% at 1.39m, while BEV demand rose 28.6% and accounted for 25.6% of the market. That remained below the government's 33% headline zero-emission vehicle mandate target.

SMMT chief executive Mike Hawes said: "August was a bright spot for the new car market and another strong month for electric car uptake, showing that motorists are responding to the huge choice and compelling offers available. But August is a low-volume month, so September will be the acid test."