Uptake of electric cars massively increased in the UK in March, a bumper month for new car sales – but the industry has warned the growth is unsustainable without proper support for consumers to make the switch.
Figures released by the Society of Motor Manufacturers and Traders (SMMT) reveal that new car sales were up 12.4% year on year to 357,103, following a 10.4% uptick in the same period last year - making it the best March for registrations since 2019.
A significant 14.5% increase in retail sales – to around 147,000 – was a primary factor in the overall growth, compensating for a "lacklustre performance" in March 2024, but fleet sales were up, too, by a healthy 11.5% to account for just over 200,000 registrations.
Meanwhile, there was substantial growth in sales of all types of electrified models, with hybrids posting a 27.7% uptick, plug-in hybrids growing by 37.9% and electric cars clocking a 43.2% boost to give them a market share of 19.4%.
The SMMT attributed this increase in EV popularity to manufacturers' "significant discounting" of EVs – which cost the industry around £4.5 billion in 2024 – in a bid to meet the terms of the UK's zero-emission vehicle mandate, under which they must achieve a 28% EV sales mix this year.
Currently, the EV sales mix is running well behind that; it even still lags the 22% figure that was mandated last year. But the SMMT said EVs have traditionally accounted for only around 16% of March registrations, so this is a "strong indicator of likely overall annual performance".
The organisation also noted that strong EV sales in March "will have been boosted by shrewd buyers" looking to get ahead of the VED Expensive Car Supplement which came into effect on 1 April, imposing a £195 yearly fee for five years on cars costing more than £40,000. EVs were previously exempt from this.
Vauxhall earlier this week announced that it was cutting the list price of its range-topping Grandland and Astra EVs to below £40,000 to swerve the 'luxury car tax'.
Meanwhile, sales of petrol cars were down 0.4% - just enough to drop the fuel down to a 49.5% market share from 55.9% last year.
And just under 21,000 diesel cars were registered last month - a 10.1% drop that gives oil-burners just a 5.9% share of the market.
SMMT chief Mike Hawes hailed the "welcome return to growth" as an optimism-boosting "fillip for the industry" but said work must be done to ensure it's sustained in the months and years to come.
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And let's see what the sales figures are next plate change, this , as said , is a reaction to the new VED on cars over £40K nothing else.