UK Car Market Surges to Four-Year High
A total of 380,627 new vehicles were registered last month, representing a 6.6 percent increase from the same period in 2025. This marks the highest monthly and March-level performance in over four years.
Private demand was the main driver, with retail registrations climbing 10.1 percent to 162,470 units. Fleet registrations rose 3.5 percent to 208,853 units, while business registrations jumped 18.8 percent, albeit from a smaller base.
Electrified vehicles reached an unprecedented monthly total of 196,059 units, reflecting the sector’s continued push toward decarbonisation. Battery electric vehicles (BEVs) increased 24.2 percent to 86,120 units, plug-in hybrids surged 46.9 percent, and hybrid electric vehicles grew 7.3 percent.
Despite these record numbers, BEVs still accounted for only 22.6 percent of the market in March, far short of the 33 percent share mandated under the government’s Zero Emission Vehicle (ZEV) target for 2026.
The SMMT emphasized that the gap underscores growing pressure on manufacturers, who are grappling with higher-than-expected battery costs and soaring energy prices, while heavily relying on discounting to drive sales.
"At the start of 2026, battery costs were more than 30 percent higher than expected, and industrial energy prices were around 80 percent above 2021 levels. Public charging costs can also exceed levels from five years ago by more than 140 percent," the SMMT reported.
The industry body also cautioned that geopolitical tensions, particularly involving Iran, could further dampen consumer confidence by raising living costs and straining supply chains.
"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 reflects orders placed before the start of the Iran conflict, which threatens to raise the cost of living and undermine consumer confidence," said SMMT Chief Executive Mike Hawes, urging an immediate reassessment of the transition to zero-emission vehicles.
The UK automotive industry remains a critical economic driver, generating £92 billion ($115 billion) in turnover and supporting hundreds of thousands of jobs, according to SMMT.
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