October saw a 0.5% increase in new car registrations, with data indicating that 144,948 new cars were registered in the month, the Society of Motor Manufacturers and Traders (SMMT) said.
This figure is slightly higher than the 144,288 recorded during the same month in 2024.
Battery electric vehicles claimed a 25.4% share of the new car market in October, marking the second highest monthly level this year.
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However, new petrol car registrations experienced an 11.6% decline, with their market share dropping to 44.4%, down from 50.5% the previous year.
Mike Hawes, SMMT chief executive, expressed concern over the potential impact of Government plans to impose company car tax on vehicles obtained through Employee Car Ownership Schemes (ECOS), a move expected to result in the closure of such schemes.
Mr Hawes said: "The Government has backed the 海角视频 automotive sector with EV incentives and global trade deals, helping drive growth and encourage decarbonisation.
"But scrapping ECOS would undermine that progress – penalising workers, reducing Exchequer income and putting green investment at risk.
"At a time when the Budget should fuel growth, the measure will do the exact opposite.
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"It is time for a rethink."
In its updated outlook, the SMMT predicts that the new car market will reach 2.012 million units this year.
If achieved, this would be the first time it has surpassed two million since before the coronavirus pandemic in 2019.
Battery electric vehicles are projected to secure a market share of 23.3% this year.
Under the Government's zero-emission vehicle mandate, a minimum of 28% of new cars sold by each manufacturer in the 海角视频 this year must be zero emission, typically meaning purely electric.
There are several flexibilities available to manufacturers to avoid penalties for not meeting the target.
Ian Plummer, chief commercial officer at Manchester-based online vehicle marketplace Autotrader, said that the introduction of Government grants for certain new electric cars is "clearly sparking demand".
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He continued: "It is now up to the Chancellor to avoid own goals on growth in this month's Budget and encourage adoption by refusing to slap business rates on public chargers and resisting the temptation to scrap the Employee Car Ownership Scheme."
Tanya Sinclair, chief executive of lobby group Electric Vehicles 海角视频, commented: "Petrol sales are collapsing while electric vehicle sales continue to surge.
"Drivers have done their homework and they know there are more affordable models, better lease options and smarter charging choices than ever before."