Electric Car Registrations Reach Unprecedented Peak in March
March witnessed a historic surge in electric car sales, with battery electric vehicle registrations climbing to a record high of 86,120 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). This represents a substantial 24.2% increase compared to the same month last year, highlighting a significant shift in consumer preferences.
Electrified Vehicles Dominate Market Amid Fuel Price Hikes
The broader category of electrified vehicles, which includes plug-in hybrids and hybrid electric models, accounted for 196,059 registrations in March. Plug-in hybrid registrations experienced a remarkable 46.9% year-on-year surge, while hybrid electric vehicles saw a 7.3% rise. This growth comes against a backdrop of escalating fuel costs, driven by soaring oil and gas prices linked to the ongoing conflict in the Middle East.
Average unleaded petrol prices have increased by approximately 18% since the Iran war escalated in late February, reaching 157p per litre, as reported by the RAC. Diesel prices have been even more affected, jumping by a third to an average of 189p per litre. The SMMT suggests that these rising fuel expenses may be sparking greater interest in electric vehicles (EVs), which offer an alternative to traditional fuel-powered cars.
Overall Car Market Shows Resilience Despite Economic Pressures
Despite the financial strain on drivers, the overall new car market grew by 6.6% in March compared to last year, with 380,627 new vehicles registered. This performance marks the best monthly sales figure since 2019, prior to the pandemic. March is traditionally the busiest month for new car sales, as many buyers wait for the annual numberplate change.
Mike Hawes, chief executive of the SMMT, noted that much of March's strong performance likely stemmed from orders placed before the Iran conflict began. However, he warned that the war threatens to raise the cost of living and undermine consumer confidence, potentially impacting future sales.
Consumer Interest in EVs Surges as Affordability Improves
Ian Plummer, chief customer officer for vehicle marketplace Autotrader, reported a sharp increase in inquiries for new EVs last month. "Interest has picked up sharply as fuel prices rise, with new EV inquiries on our platform surging between February and March – the equivalent of one every minute last month," he said. "If that online intent converts into sales, progress will follow."
Plummer added that with a wave of new models, deeper discounts, and lower running costs, more buyers are beginning to view EVs as a practical way to manage energy expenses. "The market may well be fast approaching an EV affordability tipping point," he concluded.
Government Mandate and Industry Concerns Loom Large
Despite the positive trends, the SMMT expressed concerns that EV demand still lags behind government targets. EVs comprised about 22% of the overall car market in March, 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 called for an "urgent review of the transition" to electric vehicles, emphasizing that geopolitical events have added urgency to this need. A spokesperson for the Department for Transport stated that the government is actively supporting businesses in the transition to electric by investing in EV manufacturing and expanding the UK's charging network.
"Our Electric Car Grant is making EVs cheaper and more accessible than ever," the spokesperson said. "Over 85,000 drivers have already saved up to £3,750 when buying a new EV, and we're saving renters £500 off the cost of installing home chargers, unlocking cheaper charging rates for residents. With global price fluctuations at the petrol pumps, making the switch has never made more sense."
