UK new car registrations rose by 12.4% year-on-year in March, with the highest volume ever recorded by EVs.
The data reverses the overall market trend from the first two months of this year, which saw year-on-year declines, hampered by falling fleet demand.
In March, fleet registrations rose by 11.5% – although this was still behind private registrations, which saw 14.5% growth. Business registrations, classed as those to fleets with fewer than 25 vehicles, were down by 0.3%.
The EV registrations record was achieved with 69,313 units, representing a 43% year-on-year increase. However, the Society of Motor Manufacturers and Traders (SMMT), which publishes the data, noted that EVs’ 19.4% share of the overall market was still down on the level required by the UK Government’s ZEV mandate.
Plug-in hybrid registrations rose by 37.9% in March, for a 9.5% market share, while conventional hybrids were up by 27.7%, for a 15.7% market share.
Petrol car registrations were down by 0.4%, taking 49.5% of the market, while diesels were down by 10.1% for a 5.9% market share.
SMMT chief executive Mike Hawes said: “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.
“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.
“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.”
Novuna Vehicle Solutions managing director Jon Lawes said: “The Chancellor’s Spring Statement was a missed opportunity to accelerate adoption and maintain impetus in the electric vehicle market. The government’s lack of decisive fiscal reform risks stalling the UK’s transition at a critical moment for the market.
“Despite a surge in availability of more affordable electric models – particularly from Chinese manufacturers – which is driving greater consumer choice and shaking up the market, current tax policy is a deterrent to adoption.
“With impending US tariffs sending shockwaves through the UK automotive sector which is already still in limbo awaiting clarity on the ZEV mandate consultation, we need urgent action and revised targets to restore momentum. Without intervention, the UK risks putting the brakes on progress at precisely the moment it needs acceleration.”
