Registrations of electric cars reached record levels in March as the new car market experienced its strongest ‘new plate’ month since 2019.
According to the Society of Motor Manufacturers and Traders (SMMT), EV registrations jumped 43.2% compared with March 2024, with nearly 70,000 new pure electric cars joining the UK’s roads.
The surge still fell short of levels needed to meet ZEV mandate targets, and the SMMT cautioned that recent tax changes may have artificially boosted March figures at the expense of sustainable growth.
March traditionally serves as the most significant month for the new car industry, with the new registration plate driving increased demand. Industry experts also view it as a reliable indicator of likely annual performance.
While EV sales grew significantly more than the overall market’s 12.4% increase, they represented just 19.4% of all March registrations – 8% below ZEV mandate targets. Year-to-date, EVs account for 20.7% of all registrations.
The SMMT cited the expanding variety of available EVs and manufacturer incentives as key factors driving growth, particularly among private retail customers. March saw private sales increase by 14.5% following several challenging months.
The UK now offers 130 different electric car models with an average range of 290 miles – twice the weekly mileage of the average driver. However, manufacturers are finding it increasingly difficult to maintain discounts on electric models while facing new challenges after EVs became subject to taxation in April.
From April 1, all EVs now incur a £10 Vehicle Excise Duty charge in their first year, rising to £195 annually from their second year. Additionally, EVs priced above £40,000 face the Expensive Car Supplement – an extra £425 yearly charge from years two through six of ownership.
Without regulatory reconsideration, the SMMT warned manufacturers will struggle to maintain discounts, potentially deterring prospective EV buyers.
“A welcome return to growth, and substantial growth at that, is a fillip for the industry. Moreover, with March being the best month ever for electric car registrations, there is reason for optimism,” said Mike Hawes, SMMT chief executive.
“Manufacturers remain committed to the market decarbonisation the country and the environment demands, but we need sustained growth, not a short-term bubble driven by unsustainable manufacturer discounting and drivers rushing to beat a tax hike,” Hawes added.
“Without substantive government support for consumers, the current regulatory regime is undeliverable. A rapid response to the government consultation is therefore needed – one that adds flexibilities that reflect the natural level of demand and supports the industry to deliver growth in the face of a tough set of global challenges.”
