EV sales rising strongly – but not fast enough for Government

Registrations of new cars in the UK soared 12.4% in March, in what is traditionally one of the busiest months of the year due to the change in registration plates.

The battery-electric vehicle (BEV) share of registrations climbed strongly to claim just under a fifth of the overall market, its highest ever-figure but still short of the levels demanded by the Government’s Zero-Emissions Vehicle (ZEV) mandate.

2504 PrivFleet The latest figures from the Society of Motor Manufacturers & Traders (SMMT) showed total registration figures of 357,103 vehicles, a higher rise than the 10.4% seen in March 2024 and the best March performance since 2019. The ‘new plate’ month usually accounts for around 16% of annual registrations and provides a strong indicator of likely overall annual performance.

A highlight of the figures was the return to growth of the retail market after many months of decline – registrations to private buyers were up 14.5% while fleet registrations rose 11.5%.

Electric sales sparked

All sectors of the electrified market showed growth, full BEVs climbing a substantial 43.2%, hybrid electric vehicles (HEVs) up 27.7%, and plug-in hybrids (PHEVs) up 37.9%, making March 2025 the largest month ever for registrations of electric cars with 69,313 new cars hitting the road.

However the apparently highly positive figures for electric vehicles were driven by heavy discounting by manufacturers seeking to meet the ZEV Mandate, and the results are still some eight percentage points behind targets set by the Mandate.

2504 Fueljpg The figures are also likely to have been skewed by buyers securing their purchases ahead of changes to VED and the Expensive Car Supplement, which from 1st April has also applied to new EVs. Figures suggest these changes could potentially raise ownership costs for most EV drivers by more than £2,000 over the next six years.

Year-to-date BEV uptake comprises 20.7% of the market, with the Mandate demanding 28% by the end of 2025. Manufacturers have been hoping for some respite from a Government review of the Mandate conducted over the winter but it is yet to produce any results.

SMMT Chief Executive Mike Hawes described a return to substantial growth as a welcome fillip for the industry with the EV figures in particular giving reason for optimism, but added; “We need sustained growth, not a short-term bubble driven by unsustainable manufacturer discounting and drivers rushing to beat a tax hike.”

Government must act

According to Hawes without substantive government support for consumers, the current regulatory regime will be 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,” he said, adding that the Chancellor’s Spring Statement had been a missed opportunity to intervene, as government incentives can change consumer behaviour.

Industry figures reacted in similar fashion. “This transition provides a huge economic opportunity for the UK and the Government needs to be incentivising consumers to purchase a new vehicle, which will drive growth in the UK economy,” said Sue Robinson, CEO of the National Franchised Dealers Association.

“Furthermore, with the announcement of a 10% tariff on all UK imports to the US earlier this week, followed by the introduction, yesterday, of a 25% tariff on cars entering the US, it is crucial that the Government acts quickly and decisively to safeguard jobs and protect our industry,” Robinson added.

Susan Wells of global energy provider Centric said that the Government must continue to provide incentives, not roadblocks, to further increase adoption levels. “Changes to Vehicle Excise Duty, which will see EV owners pay car tax for the first time, could act as a barrier for drivers looking to make the switch,” she added.

“With drivers already cautious about EV-related expenses, we need bold financial incentives, not penalties, to accelerate our transition away from fossil fuel vehicles.”

Jon Lawes, Managing Director at Novuna Vehicle Solutions, one of the UK’s largest fleet operators argued that the Government’s lack of decisive fiscal reform risks stalling the UK’s transition at a critical moment for the market

“Despite a surge in availability of more affordable electric models – particularly from Chinese manufacturers – which is driving greater consumer choice and shaking up the market, current tax policy is a deterrent to adoption,” Lawes said.

“With impending US tariffs sending shockwaves through the UK automotive sector which is already still in limbo awaiting clarity on the Zero Emission Vehicle (ZEV) mandate consultation, we need urgent action and revised targets to restore momentum,” he added.

“Without intervention, the UK risks putting the brakes on progress at precisely the moment it needs acceleration.”