UK car market enjoys bumper March

The UK caller car marketplace grew by 6.6% successful March, typically the busiest period of the year, with 380,627 caller vehicles registered, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). The show marks the champion March – and champion period wide – since 2019.

Growth was driven chiefly by backstage demand, with retail registrations rising 10.1% to 162,470 units. Fleet registrations accrued 3.5% to 208,853 units, portion the smaller concern assemblage grew 18.8% to 9,304 units.

March was besides the champion period connected grounds for electrified conveyance volumes, accounting for 196,059 registrations, underlining the interaction of manufacturers’ concern successful roadworthy transport decarbonisation. Plug-in hybrid (PHEV) registrations roseate 46.9% to instrumentality a 13.0% marketplace share, portion hybrid electrical vehicles (HEVs) accrued 7.3% to instrumentality 15.8% of the market. Battery electrical vehicles (BEVs) reached a caller record, up 24.2%, to 86,120 registrations successful the month. However, with a marketplace stock of lone 22.6% for the month, and 22.4% twelvemonth to date, the SMMT notes that uptake is present adjacent further adrift of the Zero Emission Vehicle (ZEV) Mandate target, which demands 33% for 2026.

Despite rising EV volumes, conditions person diverged sharply from those assumed erstwhile the mandate was set. At the commencement of 2026, artillery costs were much than 30% higher than expected and concern vigor prices astir 80% supra 2021 levels, portion nationalist charging tin outgo implicit 140% much than 5 years ago. Future costs and, therefore, request are adjacent much uncertain fixed the Iran crisis, which whitethorn spark involvement successful EVs but risks pushing up vigor and proviso concatenation costs, expanding the outgo of surviving and undermining user confidence.

While authorities has acknowledged these pressures – and sought to enactment the market, astir notably done the instauration of the Electric Car Grant – manufacturers are inactive forced to enarthrosis unsustainable costs to comply with the regularisation erstwhile earthy request lags ambition. Alongside billions invested successful some the exertion and merchandise to present a prime of much than 160 EV models, manufacturers are relying heavy connected discounting to stimulate demand.

Industry’s calls for a accelerated reappraisal of the modulation person been fixed added urgency by geopolitical events. While different large planetary markets are revising their modulation plans to bespeak geopolitical and marketplace realities, delays to a reappraisal of the UK modulation volition enactment the state successful an uncompetitive position, undermining user choice, concern and, ultimately, the gait of decarbonisation.