EV sales hit record levels in ‘most important month’

Registrations of electric cars hit an all-time high in March as the new car market enjoyed its best ‘new plate’ month since 2019.

EV registrations soared 43.2% compared with March 2024, with almost 70,000 new pure electric cars added to the UK’s roads, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).

However, they still fell some way short of the levels required by the end of the year to meet the ZEV mandate targets, and the SMMT warned that recent tax changes could have boosted March’s figures at the expense of long-term growth.

March is traditionally viewed as the most important month of the year for the new car industry as the new registration plate drives a surge in demand. It is also seen as a strong indicator of the likely overall annual performance.

While EV sales rose far more than the rest of the market, which grew 12.4%, they still only accounted for 19.4% of all registrations in March – 8% short of the ZEV mandate targets. Year-to-date, they account for 20.7% overall.

The SMMT attributed the huge growth in EV registrations to the growing variety of EVs on offer and incentives and discounts being offered by car makers to attract buyers, particularly private retail customers. March saw a 14.5% increase in private sales after several difficult months.

According to the SMMT there are now 130 different electric cars on sale in the UK with an average range of 290 miles – twice the weekly mileage of the average driver. However, it said car makers were struggling to maintain discounts on electric models and faced fresh headwinds after EVs became liable for tax at the start of April.

From April 1, all EVs are subject to a £10 VED – road tax – charge in their first year, rising to £195 per year from their second. On top of that, EVs costing more than £40,000 are also liable for the Expensive Car Supplement, which applies a further £425 per year charge from years two to six of ownership.

The SMMT warned that without a rethink on regulation, manufacturers would struggle to maintain discounts and buyers could be put off EVs.

Mike Hawes, SMMT chief executive, said: “A welcome return to growth, and substantial growth at that, is a fillip for the industry. Moreover, with March being the best month ever for electric car registrations, there is reason for optimism.

“Manufacturers remain committed to the market decarbonisation the country and the environment demands, but we need sustained growth, not a short-term bubble driven by unsustainable manufacturer discounting and drivers rushing to beat a tax hike.

“Without substantive government support for consumers, the current regulatory regime is undeliverable. A rapid response to the government consultation is therefore needed – one that adds flexibilities that reflect the natural level of demand and supports the industry to deliver growth in the face of a tough set of global challenges.”