The UK new car market achieved its strongest March performance in seven years with registrations rising 6.6%, driven by a record surge in electric vehicle volumes.

A total of 380,627 new vehicles were registered, marking the best March and the best month overall since 2019.

Private demand rebounded, with retail registrations rising 10.1% to 162,470 units, according to the new figures from the Society of Motor Manufacturers and Traders (SMMT). Fleet registrations increased 3.5% to 208,853 units, while the smaller business sector grew 18.8% to 9,304 units.

March was also the best month on record for electrified vehicle volumes, accounting for 196,059 registrations or 51.4% of the market. Plug-in hybrid (PHEV) registrations rose 46.9% to take a 13.0% 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. This gives a market share of 22.6% for the month, and 22.4% year to date, compared to the ZEV mandate target of 33% for 2026.

Carmakers do have various flexibilities at their disposals. However, with the Government having initiated a review of the ZEV mandate and results due by early 2027, the industry has stepped up its calls for urgent changes to the targets as it warns that “conditions have diverged sharply from those assumed when the mandate was set”.

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.”

Industry experts are split yet again on the true state of the EV market.

Philip Nothard, insight director at Cox Automotive, said total demand and EV uptake had both been inflated by plate-change seasonality and intensified manufacturer and fleet activity.

“Beneath the surface, EV growth remains volume-led rather than share-led, with penetration still materially below mandated targets, highlighting a clear structural gap between market reality and policy ambition. At the same time, fragile consumer demand, affordability pressures and the continued strength of hybrids and ICE underscore that the transition is not yet self-sustaining.”

Nothard said the figures show a moving market, but “one that will likely require regulatory recalibration to better align targets with prevailing economic and demand conditions”.

Greg Hanson, group vice president at Informatica from Salesforce, also said the swing in demand for electric vehicles can be attributed to EV manufacturers investing heavily and discounting to drive uptake.

He added: “But keeping this momentum could be difficult with consumer confidence fragile and the potential of the pay-per-mile tax for EVs.

“At the same time, manufacturers are navigating an increasingly volatile global supply chain, from energy and materials to semiconductor and battery availability.”

But Delvin Lane, CEO of charging firm InstaVolt, said: “March registration data shows petrol market share at 24.8%, down from 29.7% a year ago. BEV is at 22.7%. The gap is now just over two percentage points. That gap was ten points twelve months ago.

“This is not sentiment. It is not momentum. It is a structural shift showing up in the numbers, month after month. Petrol is losing share. Electric is taking it. The direction is not in question.

“What that requires is infrastructure that keeps pace. Drivers making that switch need to know the network is ready for them. That is the job. That is what the data is asking of us.”

And Tanya Sinclair, chief executive of Electric Vehicles UK, said that the car industry’s public venting of its concerns “has consequences”.

“Drivers considering an electric vehicle do not need to hear that the sector is uncertain about its own future. Every public hesitation is a reason handed to someone to wait.”

Meanwhile, John Lewis, CEO of public charging firm Char.gy, said a record-breaking 22.7% year-on-year rise “proves that ambitious policy works when government and industry stay the course together”.

Carwow said the surge in EV and hybrid registrations mirrors trends on its own platform.

Philipp Sayler von Amende, global chief commercial officer, added: “While the plate change has given the market a seasonal boost, the underlying trend is clear – we’re seeing fuel costs front of mind and more drivers actively shifting towards electrified options.”

And Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), pointed to the growing evidence of a surge of interest in electric vehicles against the backdrop of the Iran war and rapidly rising petrol and diesel prices.

“While it is too soon for this to have translated into new car sales, it indicates that more people are looking to protect themselves from shocks in global energy markets over which we have no control. Increasingly powered by electricity generated by British wind and solar farms, EVs offer the UK a way to enhance its energy security by reducing its dependence on oil imported from abroad.”