Record March for UK car market as EV registrations hit new high

The UK’s new car market delivered its strongest performance in years this March, with registrations rising 6.6% to 380,627 units, according to the Society of Motor Manufacturers and Traders (SMMT). The figure marks the best March, and best single month overall, since 2019, buoyed by the arrival of the new ‘26’ number plate and resilient consumer demand.

Growth was driven largely by private buyers, with retail registrations climbing 10.1% to 162,470 units. Fleet demand also rose, albeit more modestly, increasing 3.5% to 208,853 units, while business registrations jumped 18.8% to 9,304 units.

March also set a new benchmark for electrified vehicles. A total of 196,059 electrified models were registered, the highest monthly figure on record. Battery electric vehicles (BEVs) led the surge, rising 24.2% to 86,120 units.

However, despite this milestone, EV adoption continues to lag behind government expectations. BEVs accounted for just 22.6% of the market in March, well short of the 33% required under the UK’s Zero Emission Vehicle (ZEV) mandate for 2026.

Plug-in hybrids (PHEVs) saw the fastest growth, up 46.9% to capture a 13.0% market share, while hybrid electric vehicles (HEVs) rose 7.3% to 15.8%.

Industry leaders warn that the headline growth masks deeper challenges. Rising battery costs – more than 30% higher than expected at the start of 2026 – combined with soaring industrial energy prices and expensive public charging, are putting pressure on manufacturers and consumers alike.

Geopolitical uncertainty, particularly the ongoing Iran crisis, is adding further strain. While higher fuel prices may encourage some drivers to consider EVs, the broader impact on energy costs and supply chains risks undermining consumer confidence.

“The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy,” he said. “However, the headlines belie the costs incurred and the challenges involved. Much of March’s performance will be from orders placed before the start of the Iran conflict, which threatens to raise the cost of living, undermining consumer confidence.”

He added: “Against this backdrop, and with the EV market falling further away from mandated levels despite record levels of incentives, an urgent review of the transition is required to secure a sustainable market, economic growth and the UK’s net zero ambitions.”

Industry voices echo concerns about affordability.

“This year’s sales come against a more complex backdrop. Rising oil prices linked to global tensions are starting to shape consumer behaviour, with many drivers reassessing the long-term cost of petrol and diesel ownership.

“That’s likely driving more interest in electric vehicles, as buyers look to protect themselves from fluctuating fuel prices. At the same time, affordability is still a real concern, and if electricity prices rise later in the year, that cost advantage could start to narrow.

“While a stronger new car market is good news for the industry, many households will continue to look to the used market, where there’s more flexibility on price and a wider choice of options.

“Cost of ownership is now front of mind for buyers across both new and used markets, with motorists weighing running costs just as carefully as headline price.”

With manufacturers investing billions in electrification, and offering significant discounts to stimulate demand, the gap between regulatory targets and real-world adoption is becoming more pronounced.

As other global markets adjust their transition strategies in response to economic and geopolitical pressures, UK industry leaders are warning that delays to policy review could risk investment, limit consumer choice, and slow progress toward net zero.