Britain’s new car market hit a seven-year high in March with 380,627 vehicles registered – a 6.6% increase from last year, according to the Society of Motor Manufacturers and Traders (SMMT).
The figures confirm that March’s traditional plate-change month remains the UK’s automotive retail powerhouse.
Private buyers drove the surge. Retail registrations climbed 10.1% to 162,470 units, outpacing fleet sales which rose 3.5% to 208,853. Business segment purchases jumped 18.8% to 9,304 units.
Electric vehicles shatter monthly records
March delivered a historic milestone for electrified vehicles – 196,059 registrations across all plug-in and hybrid categories. That’s the highest monthly volume ever recorded.
Battery electric vehicles led the charge, surging 24.2% to reach 86,120 units. Plug-in hybrids climbed 46.9% to claim a 13% market share. Conventional hybrids grew 7.3%, capturing 15.8% of total sales.
The momentum masks a growing problem. BEVs accounted for 22.6% of March registrations and 22.4% year-to-date – well below the 33% target demanded by the Zero Emission Vehicle (ZEV) Mandate for 2026.
Economic headwinds challenge transition targets
Market conditions have shifted dramatically since the ZEV Mandate targets were established. Battery costs now sit more than 30% above originally assumed levels. Industrial energy prices are around 80% higher than 2021 rates.
Public charging costs have soared over 140% compared to five years ago.
The Iran crisis adds another layer of uncertainty – potentially boosting interest in electric driving while threatening to push up energy costs, squeeze household budgets, and erode consumer confidence.
Ministers introduced the Electric Car Grant to address some headwinds. But manufacturers argue they’re still absorbing unsustainable costs to meet regulations when natural demand hasn’t caught up.
More than 160 EV models are now available, backed by billions in industry investment. Carmakers are relying heavily on discounting to move inventory.
Industry calls for urgent policy review
Mike Hawes, SMMT’s chief executive, struck a cautious tone despite the strong headline numbers.
Much of March’s performance will have been driven by orders placed before the Iran conflict escalated, and rising living costs could quickly dampen buyer appetite.
Hawes called for an urgent review of the transition framework. He argued that other major economies are already revising their timelines to reflect geopolitical and market realities.
The SMMT warns that delaying a UK policy review could leave the country at a competitive disadvantage – ultimately undermining consumer choice, inward investment, and the pace of decarbonisation itself.
The gap between current EV adoption rates and government targets continues to widen, despite record sales volumes and unprecedented model availability.
