Fleet registrations increased 3.5% to 208,853 units, while the smaller business sector grew 18.8% to 9,304 units, according to figures published by the Society of Motor Manufacturers and Traders (SMMT).
The overall UK new car market grew by 6.6% in March, which the SMMT said marked the best March and best month overall since 2019.
The figures showed that 380,627 new vehicles were registered in March.
Growth was driven primarily by private demand, with retail registrations rising 10.1% to 162,470 units.
Fleet registrations increased 3.5% to 208,853 units, while the smaller business sector grew 18.8% to 9,304 units.
March was also the best month on record for electrified vehicle volumes, accounting for 196,059 registrations.
Plug-in hybrid (PHEV) registrations rose 46.9% to take a 13.0% market share, while hybrid electric vehicles (HEVs) increased 7.3% to take 15.8% of the market.
Battery electric vehicles (BEVs) reached a new record, up 24.2%, to 86,120 registrations in the month.
However, with a market share of 22.6% for the month and 22.4% year to date, the SMMT said the uptake is now further adrift of the Zero Emission Vehicle (ZEV) Mandate target, which requires 33% for 2026.
At the start of 2026, battery costs were over 30% higher than expected and industrial energy prices around 80% above 2021 levels, while public charging costs over 140% more than five years ago.
The SMMT said that future costs and, therefore, demand are even more uncertain given the Iran crisis, which may spark interest in EVs but risks pushing up energy and supply chain costs, raising living costs and undermining consumer confidence.
The industry is calling for a rapid review of the transition have been given added urgency by geopolitical events, according to the SMMT.
It also explained that other major international markets are revising their transition plans to reflect geopolitical and market realities, and delays to a review of the UK transition will put the country in an uncompetitive position, undermining consumer choice, investment and, ultimately, the pace of decarbonisation.
Mike Hawes, chief executive at the SMMT, said: “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 will be from orders placed before the start of the Iran conflict, which threatens to raise the cost of living, undermining consumer confidence.
“Against this backdrop, and with the EV market falling further away from mandated levels despite record levels of incentives, an urgent review of the transition is required to secure a sustainable market, economic growth and the UK’s net zero ambitions.”
Reaction:
A Department for Transport spokesperson:
“These figures prove drivers across the UK are going electric in record numbers, with 86,120 new EVs sold in March alone – the highest ever recorded.
“Our Electric Car Grant is making EVs cheaper and more accessible than ever. 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.”
Melanie Lane, CEO at Pod:
“March’s figures show how quickly demand can respond when the economics of electrification are brought into focus.
“It’s positive to see a notable uplift from March plate changes but also a strong indication that drivers are actively looking for more control and predictability over their energy costs.
“What we’re seeing is a convergence of factors, where external pressures like fuel price volatility and access to smarter energy solutions have the potential to tip consumer behaviour in the right direction.
“The opportunity now for the Government is to turn that interest into sustained demand by addressing the rising costs of public charging infrastructure and supporting EV uptake in line with its own targets.”
Ian Plumer, chief customer officer at Autotrader:
“March’s figures underline a resilient and growing new car market, driven by improving affordability, availability and increased competition from new entrant brands.
“Consistent sales growth through the first quarter shows that strong offers are bringing buyers back into showrooms.
“That’s encouraging for the entire automotive ecosystem, as rising new car sales continue to also unlock supply that has constrained the used car market in recent years.
“While electric vehicles still account for fewer than one in four sales and remain below the ZEV mandate target, there are clear reasons for optimism.
“Interest has picked up sharply as fuel prices rise, with new EV enquiries on our platform surging between February and March — the equivalent of one every minute last month.
“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.”
Sue Robinson, CEO at National Franchised Dealers Association:
“The March plate change month is an important one in the industry calendar, it is therefore positive that registrations rose by 6.6%.
“Battery electric vehicles continued to strengthen their position, with BEV registrations having a record month, up 24.2% in March, accounting for 22.6% of the market. We are seeing some indication that the war in Iran has driven consumer demand for BEV’s.
“Fleet registrations are up 3.5% in March. Meanwhile, private demand, strengthened by 10.1%.
“The sector continues to face strong headwinds including the war in Iran which is likely to disrupt supply chains globally and increase the cost of living for the UK consumer.
“NFDA will continue to lobby on behalf of its members addressing the key challenges, including policy clarity, consumer confidence and the pace of the transition to zero-emission vehicles.”
Philipp Sayler von Amende, global chief commercial officer at Carwow:
“The new car market is building record momentum and that’s clearly reflected in our data.
“Enquiries sent to Carwow’s dealer partners rose 15% year-on-year last month, with electrified models continuing to drive much of that growth.
“March’s surge in EV and hybrid registrations also mirror what we’ve seen on our platform. Demand for BEV and hybrids rose sharply month-on-month, up 21% and 22% respectively.
“While the plate change has given the market a seasonal boost, the underlying trend is clear – we’re seeing fuel costs front of mind and more drivers actively shifting towards electrified options.
“Brand performance has also been notable. OMODA and BYD both saw standout growth in Q1, up 173% and 88% respectively.
“But it’s not just newer entrants gaining traction -Vauxhall enquiries rose 89%, while BMW and Cupra both delivered solid growth of 30%.
“We’re expecting hybrid demand to remain strong through the second quarter.
“During the first three months of 2026 we saw the volume of hybrid-related enquiries passed to Carwow dealer partners increase by 43% quarter-on-quarter, outperforming those of BEVs, which grew 35% over the same period.
“Hybrids are now edging ahead of BEVs across both new and used, accounting for 32% of Carwow’s new car enquiries (vs 30% BEV) and 18% of used enquiries (vs 16% BEV) in the first three months of the year.”
James Hosking, managing director of AA Cars:
“March is always a critical month for the new car market.
“The arrival of the new ‘26’ plate has once again delivered an expected uplift in registrations, giving dealerships and manufacturers a welcome boost after a solid start to the year.
“However, this year’s sales come against a more complex backdrop.
“Rising oil prices linked to global tensions are starting to shape consumer behaviour, with many drivers reassessing the long-term cost of petrol and diesel ownership.
“That’s likely driving more interest in electric vehicles, as buyers look to protect themselves from fluctuating fuel prices.
“At the same time, affordability is still a real concern, and if electricity prices rise later in the year, that cost advantage could start to narrow.
“While a stronger new car market is good news for the industry, many households will continue to look to the used market, where there’s more flexibility on price and a wider choice of options.
“Cost of ownership is now front of mind for buyers across both new and used markets, with motorists weighing running costs just as carefully as headline price.
“We’re already seeing that reflected in our latest Used Car Index, with EV searches up by more than a quarter in early March.
“The question now is whether that shift continues if fuel prices remain unpredictable.”
Delvin Lane, CEO at InstaVolt:
“March registration data shows petrol market share at 24.8%, down from 29.7% a year ago. BEV is at 22.7%. The gap is now just over two percentage points.
“That gap was ten points twelve months ago.
“This is not sentiment. It is not momentum. It is a structural shift showing up in the numbers, month after month. Petrol is losing share. Electric is taking it. The direction is not in question.
“What that requires is infrastructure that keeps pace. Drivers making that switch need to know the network is ready for them. That is the job. That is what the data is asking of us.”
Tanya Sinclair, CEO at Electric Vehicles UK:
“Growth at this scale was the ambition for over a decade. It is arriving now. The response from parts of the industry has been to keep airing concerns.
“That is a choice and it has consequences. Drivers considering an electric vehicle do not need to hear that the sector is uncertain about its own future.
“Every public hesitation is a reason handed to someone to wait.
“The focus belongs on the people making the switch. Making it easier, making it reliable, making it worth it. That is how confidence is built.
“Not in boardrooms, but in the experience of drivers who chose electric and found it worked exactly as promised.”
John Lewis, CEO at char.gy:
“March’s EV registration data is a real boost for everyone who backed the ZEV mandate. A record-breaking 22.7% year-on-year rise proves that ambitious policy works when government and industry stay the course together.
“Rising oil prices are a reminder of why this transition matters. Every electric vehicle on the road is a step towards energy security, cleaner air, and lower running costs for British drivers.
“char.gy remains fully committed to building the UK’s charging infrastructure, delivering skilled green jobs, and ensuring that every driver, in every community, has access to reliable public charging.”
James Court, public policy director at Octopus Electric Vehicles:
“The market is growing and we’re seeing a new wave of new drivers reacting to the petrol price crisis. Drivers are moving and the mandate is working.
“What they need now is a consistent message from industry and government. The brands gaining share are the ones getting on with it. That is the only message that matters right now.”
John Cassidy, managing director of Close Brothers Motor Finance:
“A further rise in new vehicle registrations is often to be expected in March due to the new
registration plate.
“However, as volatility caused by geopolitics has caused petrol price spikes and could also cause shocks in electricity prices, manufacturers and dealers will be keeping a close eye on how this impacts consumer demand.
“Motorists are already feeling a financial pinch from multiple angles, and the current situation only emphasises affordability challenges.
“With the Government’s plans to increase fuel duty still in place, drivers will feel like they are being left behind. And as more and more manufacturers backtrack on plans to go fully electric, they will
also feel like they are being left somewhat in the lurch.”
Vicky Edmonds, CEO of EVA England:
“With fuel prices still rising and providing growing uncertainty for UK drivers, we’re seeing the continued trend of EVs constituting the safe, reliable and affordable option for consumers looking at the new car market.
“This is proof that drivers are perfectly happy switching if the right incentives are there.
“It’s now vital that we start seeing incentives that attract lower and middle income households to this market, and that we see a similar shift in the used market where the vast majority of drivers look for their next vehicle.”
