New car sales in March rose 12.4% to 357,103 units, the best March performance since 2019.
Fleet registrations rose 11.5% and there was also a recovery in private buyer uptake following last year’s lacklustre performance, with a 14.5% rise in registrations. business sales were flat (-(-0.3%).
All types of electrified vehicles recorded growth in the month, with hybrid electric vehicles (HEVs) up 27.7%, plug-in hybrids (PHEVs) up 37.9%, and battery electric vehicles (BEVs) up 43.2% as manufacturers incentivised uptake with significant discounting.
As a result, March became the largest month ever for registrations of electric cars. Some 69,313 new BEVs reached the road.
While EV market share improved significantly on March 2024, at 19.4% it remains more than eight percentage points behind targets set by the ZEV Mandate.
Sales of BEVs were also pulled forward by consumers buying in March ahead of the VED Expensive Car Supplement , which came into effect on 1 April.
Mike Hawes, SMMT chief executive, said, “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.
“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.”
