Electric Car Sales Soar to Record High in March as Fuel Prices Surge
March witnessed an unprecedented surge in electric car registrations, setting a new record high as demand for battery-powered vehicles skyrocketed amidst a sharp increase in fuel prices. According to the Society of Motor Manufacturers and Traders (SMMT), electrified vehicles accounted for a total of 196,059 registrations last month, highlighting a significant shift in consumer preferences.
Record-Breaking Registrations for Battery Electric Vehicles
Battery electric car registrations totalled 86,120 in March, marking a substantial jump of 24.2% compared with the same month last year and establishing a new record high. This growth was complemented by a 46.9% year-on-year increase in plug-in hybrid registrations and a 7.3% rise in hybrid electric vehicles, underscoring the accelerating adoption of electrified transport options.
Impact of Soaring Fuel Prices on Consumer Behaviour
The surge in electric vehicle interest comes against a backdrop of escalating oil and gas prices, driven by geopolitical tensions in the Middle East. Average unleaded petrol prices have risen by approximately 18% since the Iran conflict intensified at the end of February, reaching 157p per litre, while diesel prices have jumped by a third to an average of 189p per litre, according to the latest data from the RAC. This upward trend in fuel costs is prompting more drivers to consider electric vehicles as a cost-effective alternative, with the SMMT suggesting it may spark heightened interest in EVs.
Overall New Car Market Growth and Industry Insights
Despite the pressure on fuel expenses, the overall new car market experienced a 6.6% growth in March compared with last year, with 380,627 new vehicles registered. This performance represents the best monthly sales figure since 2019, prior to the pandemic, with March traditionally being the busiest month due to numberplate changes. Mike Hawes, the SMMT’s chief executive, noted that much of March’s success stemmed from orders placed before the Iran conflict, but warned that the war threatens to raise the cost of living and undermine consumer confidence.
Increased Consumer Interest and Market Optimism
Ian Plummer, chief customer officer for vehicle marketplace Autotrader, reported a significant surge in inquiries for new electric vehicles last month, with interest picking up sharply as fuel prices rose. He stated that new EV inquiries on their platform surged between February and March, equivalent to one every minute in March. Plummer expressed optimism that if this online intent converts into sales, progress will follow, citing factors such as new models, deeper discounts, and lower running costs that are making EVs more appealing to buyers seeking to control their energy expenses.
Challenges and Regulatory Concerns
However, the SMMT raised concerns that while EV demand is increasing, its share of the overall car market stood at about 22% last month, which is significantly below the Government’s zero-emission vehicle (Zev) mandate. This mandate requires that at least 33% of cars sold by each manufacturer this year must be zero emission, typically meaning pure battery electric vehicles. Mr Hawes emphasised the need for an urgent review of the transition to electric vehicles, a sentiment given more urgency by recent geopolitical events.
