Electric vehicle (EV) sales increased by 78% in March, supported by rising margins and growing consumer interest linked to higher fuel costs and ongoing geopolitical tensions, according to the latest EV Performance Review from Dealer Auction.
Average retail margins for alternative fuel vehicles rose from £2,829 in February to £3,320 in March, one of the highest monthly figures recorded on the platform.
Quarterly data showed a 26% year-on-year increase in average margin for Q1.
Despite EVs still accounting for a relatively small share of overall transactions, Dealer Auction said the uplift in sales points to strengthening buyer intent.
Recent investment in UK EV infrastructure and rising fuel prices linked to the Iran conflict are contributing to increased interest.
External data cited shows EV leasing enquiries rising 36%, while new EV leads increased by 28% and used EV enquiries by 15% within a month.
Kieran TeeBoon, marketplace director at Dealer Auction, said: “The increase in both interest and sales for EVs suggests that the Iran conflict – while a contributing factor – is not simply driving a short-term panic response.
“Instead, the data points to a shift in buyer behaviour, as consumers consider both the long-term transition to net zero and the immediate impact of rising fuel costs when choosing their next vehicle.”
The average age of alternative fuel vehicles remained below five years, in line with the Q1 average of 4.9 years, while mileage increased slightly to 33,868 miles, indicating continued demand for newer, lower-mileage stock.
EVs featured more prominently in March’s top 10 retail margin rankings, with the Tesla Model X, Volkswagen ID.3 and Jaguar I-Pace all placing in the list.
The hybrid Volvo XC60 topped the rankings for both the month and the quarter.
The Tesla Model X also led CAP Clean performance rankings and delivered a strong profit margin, while the Renault Scenic E-Tech and Nissan Leaf were among the top performers for volume and pricing. The Tesla Model Y also featured in the top 10.
Hybrids continued to dominate overall, with Lexus models performing strongly across both CAP Clean and retail margin rankings.
TeeBoon added: “Data from both this month and across the first quarter highlights a strong foundation in the EV market, with growing interest increasingly converting into sales. It will be interesting to see how these patterns evolve in the coming months, particularly in light of ongoing geopolitical developments and continued growth in the AFV sector.”