March marked a milestone for electric vehicle sales, with registrations hitting an all-time high as motorists grapple with escalating fuel costs, fresh figures reveal. Electrified vehicles accounted for 196,059 registrations last month, according to the Society of Motor Manufacturers and Traders (SMMT).
Battery electric car registrations reached 86,120 in March, up 24.2 per cent on the same period last year and setting a new record. Plug-in hybrid registrations also surged by 46.9 per cent year-on-year, while hybrid electric vehicles climbed by 7.3 per cent.
The figures emerge against a backdrop of spiralling oil and gas prices driven by turmoil in the Middle East. This has hammered drivers at the forecourt, with the SMMT indicating it could be fuelling greater appetite for electric vehicles (EVs), which run partly or entirely on batteries.
Average unleaded petrol prices have risen by roughly 18 per cent since the Iran conflict intensified at the end of February, now standing at 157p per litre, the latest RAC figures show. Diesel prices have seen an even sharper increase, jumping by a third to an average of 189p per litre.
Despite the squeeze on fuel expenses, the broader new car market expanded by 6.6 per cent in March compared with last year, with 380,627 new vehicles registered, the SMMT reported. This represented the strongest monthly sales performance since 2019, before the pandemic struck.
March traditionally sees the highest volume of new car registrations annually, as many purchasers choose to wait until the number plate refresh. Mike Hawes, chief executive of the SMMT, noted that "much of March's performance will be from orders placed before the start of the Iran conflict" while warning that the war "threatens to raise the cost of living, undermining consumer confidence".
However, Ian Plummer, chief customer officer at vehicle marketplace Autotrader, reported a significant spike in enquiries for new EVs during the previous month.
"Interest has picked up sharply as fuel prices rise, with new EV inquiries on our platform surging between February and March – the equivalent of one every minute last month," he said. "If that online intent converts into sales, progress will follow.
"With a wave of new models, deeper discounts and lower running costs, more buyers are starting to see EVs as a way to take control of their energy costs. The market may well be fast approaching an EV affordability tipping point."
Yet the SMMT expressed concerns that while electric vehicle demand appears to be strengthening, EVs accounted for roughly 22 per cent of total car sales last month. This falls considerably short of the Government's zero-emission vehicle (ZEV) mandate, which requires at least 33 per cent of each manufacturer's car sales this year to be zero-emission vehicles, typically meaning fully battery-electric models.
Mr Hawes called for an "urgent review of the transition" to electric vehicles, stressing that recent geopolitical events had made this even more pressing.
A Government Department for Transport spokesperson said it was committed to helping businesses make the shift to electric, pouring money into areas such as EV manufacturing and expanding the UK's charging infrastructure. The Government has also recently increased the grant available to those without a driveway, such as renters looking to install an EV charger, raising it from £350 to £500.
"Our Electric Car Grant is making EVs cheaper and more accessible than ever," they said. "Over 85,000 drivers have already saved up to £3,750 when buying a new EV, and we're saving renters £500 off the cost of installing home chargers unlocking cheaper charging rates for residents – and with global price fluctuations at the petrol pumps, making the switch has never made more sense."
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EV sales hit record highs as fuel costs soar, suggesting the market may be reaching an affordability tipping point.
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Rising fuel prices from Middle East conflict are accelerating the shift to electric vehicles among cost-conscious driver
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Government increased EV charger grants for renters from £350 to £500 to boost adoption among non-homeowners.
