U.K. new-car sales rose just over 12% in September, fueled by strong growth in electrified vehicles amid an increased choice of models, including from new brands operating in the U.K., with increased competition driving attractive deals, an industry body said.

A total of 350,518 new cars were registered in September, compared with 312,793 in the same month last year, the Society of Motor Manufacturers and Traders said Friday.

Growth was registered across all sectors, with a 14% rise in demand from private buyers, a 10% increase in fleet deliveries and a 38% rise in the smaller business segment, SMMT said.

Battery electric vehicle registrations increased 36% in the month to a record high volume of 99,199 units, taking a 28% share of the market, while hybrid electric vehicle uptake dipped 4.2% and plug-in hybrid demand increased 56%.

SMMT said that since 2023, the number of battery electric models on the market has more than doubled, with 178 now on sale, alongside over 110 plug-in hybrids and 50 hybrid electric vehicles.

"This expanded choice, along with substantial manufacturer discounts and government incentives, delivered September's landmark result but it also shows the scale of the challenge ahead," it said.

A total of 454,945 new battery electric vehicles have now been registered in the first nine months of the year, accounting for just over 26% of registrations, significantly below the 33% U.K. government-mandated target for 2026 and behind even last year's target of 28%.

Based on the latest industry outlook, a 33% share would require an additional 265,000 new battery electric vehicle registrations in the final quarter alone, SMMT added.

The U.K. government has launched a formal review of the mandate, and SMMT said it is an opportunity to ensure the transition to EVs supports long-term growth.

"Aligning regulation more closely with market development would strengthen U.K. competitiveness, unlock further investment in new models and plants, support jobs and create a robust, sustainable market capable of delivering the decarbonization the U.K. needs," the industry body said.

Registrations of gasoline vehicles fell 6.7% in September to 131,861 units, while diesel registrations rose 12% to 14,057 units.

The U.K.'s top two best-selling cars in the month were the Jaecoo 7 and Tesla Model 3, according to the SMMT.