Record Electric Car Sales Surge Amid Soaring Petrol Prices
Soaring petrol and diesel prices, fuelled by the ongoing conflict in Iran, have triggered a dramatic surge in electric car sales, with industry figures revealing record-breaking numbers for March. The Society of Motor Manufacturers and Traders (SMMT) reported that last month witnessed the highest number of new car registrations for any March since 2019, marking a significant shift in consumer behaviour.
Unprecedented Growth in Electrified Vehicles
A total of 380,627 vehicles were registered in March, representing a substantial 6.6% increase compared to the same period last year. This growth was overwhelmingly driven by electrified vehicles, which experienced their best month on record with 196,059 registrations. Within this category, battery electric cars saw sales soar by an impressive 24%, reaching a new record of 86,120 registrations for the month.
The surge in plug-in hybrid cars was even more pronounced, with sales skyrocketing by 46.9% to just under 49,700 units. Demand for alternative hybrid electric vehicles also increased by 7.3%, indicating a broad-based move towards more fuel-efficient and environmentally friendly options.
Chinese-Made Jaecoo 7 Emerges as Surprise Best Seller
In a remarkable development, Britain's best-selling model in March was the Chinese-made Jaecoo 7, marking the first time this brand has claimed the top spot. This achievement underscores the growing challenge posed by Chinese electric vehicle manufacturers to their Western counterparts. Jaecoo, which only launched in the UK in February 2025, experienced a staggering 570% year-on-year surge in sales during March, with just over 12,700 units sold.
This sales figure nearly matched Volvo's total and exceeded Tesla's by approximately 4,000 units. It represents the first time since January 2023, when MG held the position, that a Chinese-made model has been the UK's best seller. The Ford Puma and Nissan Qashqai followed as the next best-selling models for the month.
Decline in Traditional Fuel Vehicles
Conversely, sales of petrol and diesel cars continued their downward trajectory. Petrol-powered vehicles, while still the most popular fuel type in March with almost 166,000 registrations accounting for 43.6% of the market, saw a 6% year-on-year decline. Diesel vehicles experienced an even more significant slump, with sales falling by 11.4% to 18,571 units, capturing less than 5% of the market share.
This decline aligns with the UK government's plans to ban the sale of new petrol and diesel cars from 2030, but the immediate catalyst appears to be the sharp increase in fuel prices. According to RAC head of policy Simon Williams, petrol prices have risen by nearly 22p per litre (16%) since the start of the Iran conflict on February 28, reaching an average of 154.45p. Diesel prices have surged even more dramatically, increasing by 30% since late February to an average of 185.23p per litre.
Industry Concerns and Future Challenges
Despite electric vehicles accounting for 22.6% of all sales in March, industry leaders warn that this is insufficient to meet the government's Zero Emission Vehicle (ZEV) mandate target of 33% for 2026. SMMT chief executive Mike Hawes expressed concern, noting that much of March's performance likely stemmed from orders placed before the Iran conflict, which now threatens to undermine consumer confidence and raise the cost of living.
Hawes emphasised the need for an urgent review of the transition to electric vehicles to ensure a sustainable market, support economic growth, and achieve the UK's net zero ambitions. James Hosking, managing director of AA Cars, highlighted the complex backdrop against which these sales occurred, with rising oil prices linked to global tensions prompting drivers to reassess the long-term costs of petrol and diesel ownership.
However, Hosking also cautioned that affordability remains a concern, and if electricity prices rise later in the year, the cost advantage of electric vehicles could diminish. Gary Lan, boss of Jaecoo UK, celebrated the brand's success, describing March as a "landmark moment" and attributing the Jaecoo 7's popularity to its advanced technology, standout design, and real-world usability.
The record electric car sales in March demonstrate a clear consumer shift towards electrified vehicles, driven primarily by economic factors rather than environmental concerns. As petrol and diesel prices continue to climb due to geopolitical tensions, this trend is likely to accelerate, reshaping the automotive landscape in the UK and beyond.
