UK car market sees 12.4% growth in March
The UK new car market experienced a significant boost in March, with a 12.4% increase in uptake, reaching 357,103 units, according to the Society of Motor Manufacturers and Traders (SMMT).
This growth builds on the 10.4% rise in March 2024, making this March the strongest since 2019.
Fleet registrations increased by 11.5%, while business buyer registrations saw a slight decrease of 0.3%. Private buyer uptake also rebounded, showing a 14.5% rise in registrations.
All categories of electrified vehicles showed growth in March. Hybrid electric vehicle (HEV) registrations rose by 27.7%, plug-in hybrid (PHEV) registrations increased by 37.9%, and battery electric vehicle (BEV) registrations surged by 43.2%, driven by manufacturer incentives. March saw the highest-ever volume of electric car registrations, with 69,313 new EVs hitting the road. Typically, March accounts for around 16% of annual registrations, making it a key indicator of the year’s overall performance.
While BEV market share improved compared to March 2024, at 19.4% it still lags behind the ZEV Mandate targets by more than eight percentage points. The recent implementation of the VED Expensive Car Supplement for new EVs from April 1st, which could increase ownership costs for many EV drivers, likely contributed to the strong March EV performance as buyers sought to avoid the tax increase. This situation presents a challenge for manufacturers, who must achieve a 28% EV sales share in 2025.
Manufacturers continue to offer substantial incentives for EVs, costing the industry £4.5 billion last year. Ongoing investment in product development has expanded consumer choice, with over 130 EV models now available and average driving range exceeding 290 miles. However, year-to-date BEV uptake is 20.7%, highlighting the need for government incentives and increased chargepoint rollout to boost consumer confidence and stimulate demand.
The recent Spring Statement was seen as a missed opportunity for the government to provide such incentives. An SMMT survey in February 2025 revealed that fewer than one in four new car buyers plan to purchase an EV by 2028. However, two in five “electric sceptics” could be persuaded to switch with government support, as seen in many other European markets.
Without this support, and with the next major opportunity to increase EV uptake not until September with the introduction of the 75-plate, the SMMT is urging rapid regulatory reform to avoid compliance costs that could harm the industry’s UK operations.
SMMT Chief Executive Mike Hawes acknowledged the growth as positive for the industry, particularly the record-breaking EV registrations in March. However, he cautioned that the growth needs to be sustainable, not driven by short-term factors like manufacturer discounting and tax avoidance.
