The new car market benefitted from a 12.4% boost in March as uptake rose to 357,103 units, according to the latest figures from the Society of Motor Manufacturers and Traders.
This growth, in the most important month of the year for the new car market, builds on the March 2024 performance, where uptake rose by 10.4%. As a result, this year’s ‘new plate’ month represents the best March performance since 2019.
Fleet registrations rose 11.5%, while business buyers decreased by a marginal -0.3%. There was also a recovery in private buyer uptake following last year’s lacklustre performance, with a 14.5% rise in registrations.
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 a massive 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 cars reached the road as manufacturers sought to deliver ever more zero emission vehicles to drivers during the new ‘25 plate’ month, which usually accounts for around 16% of annual registrations and, as such, provides a strong indicator of likely overall annual performance.
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. Furthermore, given the VED Expensive Car Supplement can now apply to eligible new EVs from 1 April – potentially raising ownership costs for most EV drivers by more than £2,000 over the next six years – the March EV performance will have been boosted by shrewd buyers seeking to get ahead of the taxation increase. This underscores the challenge facing manufacturers whose 2025 EV sales must accelerate to 28% share over the course of the year.
Manufacturers continue to incentivise EVs, incentives that cost the industry some £4.5 billion last year. Investment in product development is also bringing ever greater choice to consumers, with more than 130 EV models now available across every size category, and average range now reaching above 290 miles – more than double the average weekly mileage.4 Year to date, however, BEV uptake comprises 20.7% of the market, highlighting the importance of government incentives and mandatory targets for chargepoint rollout to reassure consumers and stimulate EV demand.
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.
Furthermore, given the VED Expensive Car Supplement can now apply to eligible new EVs from 1 April – potentially raising ownership costs for most EV drivers by more than £2,000 over the next six years – the March EV performance will have been boosted by shrewd buyers seeking to get ahead of the taxation increase.
This underscores the challenge facing manufacturers whose 2025 EV sales must accelerate to 28% share over the course of the year.
Manufacturers continue to incentivise EVs, incentives that cost the industry some £4.5 billion last year. Investment in product development is also bringing ever greater choice to consumers, with more than 130 EV models now available across every size category, and average range now reaching above 290 miles – more than double the average weekly mileage.
Year to date, however, BEV uptake comprises 20.7% of the market, highlighting the importance of government incentives and mandatory targets for chargepoint rollout to reassure consumers and stimulate EV demand.
The slowing demand for BEVs has been recognised by the component makers who are now advocating hybrids should form the bulk of developments, particularly as the ev-charging network develops.
CLEPA, the European Association of Automotive Suppliers, acknowledges the European Commission’s latest amendment to the CO2 standards for cars and vans. While the introduction of an averaging mechanism for emissions reduction is a positive step, CLEPA emphasises that short-term measures must be part of a broader technology-neutral ambition. A market-aligned and feasible transition requires diverse technological solutions.
“While the EU rightly pursues climate neutrality, we must acknowledge that consumers and markets are signaling a strong preference for a diverse mix of technologies.
True progress means embracing all viable solutions—whether hybrid, electric, or CO2-neutral fuels—on equal footing under a technology-neutral framework.
Demand for hybrid vehicles is rising in key markets like China and the U.S., while interest in battery electric vehicles has stagnated. Increasing technology choices will support certainty” said Benjamin Krieger, CLEPA’s Secretary General.
A recent Deloitte study reinforces this shift, showing declining demand for battery electric vehicles (BEVs) in China, the U.S., India, Korea, and Japan, while hybrid solutions are gaining traction as a pragmatic alternative. By Robin Roberts Miles Better News Agency
