The Society of Motor Manufacturers and Traders said the UK new car market grew 6.6% year-on-year in March, reaching 380,627 registrations, its strongest performance since 2019, driven largely by private demand.
Battery-electric vehicle (BEV) registrations hit a record 86,120 units during the month, up 24.2% from a year earlier, while total electrified vehicle volumes—including hybrids and plug-in hybrids—reached 196,059 units.
Private registrations rose 10.1% to 162,470 units, while fleet demand increased 3.5% to 208,853 units. Business registrations climbed 18.8% to 9,304 units, according to SMMT data.
Despite the record BEV volumes, electric cars accounted for 22.6% of total registrations in March and 22.4% year-to-date, falling short of the 33% requirement under the UK’s Zero Emission Vehicle (ZEV) mandate for 2026.
The trade body said the gap reflects ongoing challenges in scaling consumer demand, citing higher-than-expected battery costs and elevated energy prices. Battery costs at the start of 2026 were more than 30% above earlier projections, while industrial energy costs remain around 80% higher than 2021 levels.
Public charging costs have also risen sharply, increasing by more than 140% over the past five years, further complicating the transition to electric mobility.
SMMT said geopolitical developments, including tensions linked to the Iran crisis, are adding uncertainty to the market by affecting both supply chains and consumer confidence. While higher fuel prices could support EV adoption, rising living costs may dampen demand.
“The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy,” said Mike Hawes. “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. 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,” Hawes added.
The UK government has introduced incentives such as the Electric Car Grant (ECG), offering subsidies of up to £3,750 for qualifying models, while automakers continue to rely on discounts to stimulate sales. More than 160 electric models are now available in the UK market.
The ZEV mandate requires a steadily increasing share of EV sales through to 2035, with targets rising to 80% by 2030. The policy is currently under review following pressure from the automotive industry.