The UK new car market grew by 6.6% in March with 380,627 new vehicles registered, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
The performance marks the best March – and best month overall – since 2019.
Growth was driven primarily by private demand, with retail registrations rising 10.1% to 162,470 units.
Fleet registrations increased 3.5% to 208,853 units, while the smaller business sector grew 18.8% to 9,304 units.
The SMMT said March was also the best month on record for electrified vehicle volumes, accounting for 196,059 registrations, underlining the impact of manufacturers’ investment in road transport decarbonisation.
Plug-in hybrid (PHEV) registrations rose 46.9% to take a 13% market share, while hybrid electric vehicles (HEVs) increased 7.3% to take 15.8% of the market.
Battery electric vehicles (BEVs) reached a new record, up 24.2%, to 86,120 registrations in the month.
But the market is not meeting ZEV Mandate targets. However, with a market share of only 22.6% for the month, and 22.4% year to date, uptake is now even further adrift of the Zero Emission Vehicle (ZEV) Mandate target, which demands 33% for 2026.
Mike Hawes, SMMT Chief Executive, said: “The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy.
“However, the headlines belie the costs incurred and the challenges involved. Much of March’s performance will be from orders placed before the start of the Iran conflict, which threatens to raise the cost of living, undermining consumer confidence.
“Against this backdrop, and with the EV market falling further away from mandated levels despite record levels of incentives, an urgent review of the transition is required to secure a sustainable market, economic growth and the UK’s net zero ambitions.”
