The new car market saw a significant surge in March, with registrations rising 12.4% to 357,103 units, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).
The performance marks the strongest March for the industry since 2019, building on last year’s 10.4% rise during the same crucial month for new registrations.
Fleet sales were up 11.5%, offsetting a slight -0.3% dip in business purchases. Private buyers also returned to the market in greater numbers, with a 14.5% increase in registrations after a subdued showing in 2024.
Electrified vehicles experienced a strong resurgence. Hybrid electric vehicles (HEVs) climbed 27.7%, plug-in hybrids (PHEVs) rose 37.9%, and battery electric vehicles (BEVs) soared by 43.2%, buoyed by manufacturer incentives and deep discounting.
March set a new record for electric car registrations, with 69,313 BEVs hitting UK roads as carmakers pushed to deliver more zero-emission models under the new ’25 plate’.
March typically accounts for around 16% of annual new car sales, serving as a key indicator for yearly trends. Despite a notable jump in BEV market share to 19.4%, it still lags behind the 2025 Zero Emission Vehicle (ZEV) Mandate target of 28%.
The looming Vehicle Excise Duty (VED) Expensive Car Supplement, which from April applies to new EVs, likely spurred a rush from savvy buyers seeking to avoid future costs estimated at over £2,000 across six years.
Mike Hawes, SMMT chief executive, welcomed the upswing but cautioned against complacency: “A welcome return to growth, and substantial growth at that, is a fillip for the industry. Moreover, 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.”
Hawes also stressed the need for urgent government action to support long-term EV adoption: “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.”
Despite more than 130 EV models now on the market and average ranges exceeding 290 miles, BEVs accounted for just 20.7% of year-to-date registrations. The SMMT argues this highlights the pressing need for enhanced charging infrastructure and continued consumer incentives.
Hawes criticised the lack of measures in the recent Spring Statement, describing it as “a missed opportunity to intervene, as government incentives can change consumer behaviour.”
He pointed to a February 2025 SMMT survey showing that fewer than 25% of prospective buyers planned to purchase an EV by 2028, though two in five sceptics said they could be persuaded with the right incentives – a strategy employed successfully by many other European nations.
With the introduction of the new 75-plate in September, the industry sees it as the next major window to drive up EV sales. In the absence of regulatory reform and consumer support, manufacturers warn that compliance costs could undermine their UK operations.
Commenting on the March figures, Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “Whilst these figures are encouraging, last week’s Spring Statement missed an opportunity in accelerating the electrification of the UK car parc. This transition provides a huge economic opportunity for the UK and the Government needs to be incentivising consumers to purchase a new vehicle, which will drive growth in the UK economy.
“Furthermore, with the recent announcement of a 10% tariff on all UK imports to the US earlier this week, followed by the introduction, yesterday, of a 25% tariff on cars entering the US, it is crucial that the Government acts quickly and decisively to safeguard jobs and protect our industry. These are challenging times for our sector, yet dealerships have consistently demonstrated an unwavering ability to adapt.”