The new car market benefitted from a 12.4% boost in March as uptake rose to 357,103 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT) the best March performance since 2019.
All types of electrified vehicles recorded growth in the month, with hybrid electric vehicles (HEVs) up 27.7%, plug-in hybrids (PHEVs) up 37.9%, and battery electric vehicles (BEVs) up a massive 43.2% as manufacturers incentivised uptake with significant discounting and consumers rushed to beat the so-called ‘luxury tax’.
As a result, March became the largest month ever for registrations of electric cars. Some 69,313 new cars reached the road as manufacturers sought to deliver ever more zero emission vehicles to drivers during the new ‘25 plate’ month, which usually accounts for around 16% of annual registrations.
While EV market share improved significantly on March 2024, at 19.4% it remains more than eight percentage points behind targets set by the ZEV Mandate. Furthermore, given the VED Expensive Car Supplement can now apply to eligible new EVs from 1st April - potentially raising ownership costs for most EV drivers by more than £2,000 over the next six years.
Investment in product development is also bringing ever greater choice to consumers, with more than 130 EV models now available across every size category, and average range now reaching above 290 miles.
While the top 10 selling cars for both the year to date and month included the Corsa (3rd) and MG ZS (9th) which have electric versions included in the total, the others are ICE only. Tesla – which is usually a front runner in the charts - was notable by its absence.
Mike Hawes, the SMMT's Chief Executive, said, “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.”
