EV registrations have risen 24.2 per cent to reach record high, in a UK new car market that overall grew by 6.6 per cent in March, typically the busiest month of the year, with 380,627 new vehicles registered, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).

EVs made up 196,059 registrations, underlining the impact of manufacturers’ investment in road transport decarbonisation. Plug-in hybrid (PHEV) registrations rose 46.9 per cent to take a 13.0 per cent market share, while hybrid electric vehicles (HEVs) increased 7.3 per cent to take 15.8 per cent of the market. However, despite the record rise, EVs still have a 2026 market share just 22.6 per cent against a mandated target for the year of 33 per cent.

Despite rising EV volumes, conditions have diverged sharply from those assumed when the mandate was set. At the start of 2026, battery costs were more than 30 per cent higher than expected and industrial energy prices around 80 per cent above 2021 levels, while public charging can cost over 140 per cent more than five years ago. 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, increasing the cost of living and undermining consumer confidence.

While Government has acknowledged these pressures and sought to support the market, most notably through the introduction of the Electric Car Grant, manufacturers are still effectively subsidising the sector. Alongside investment in both the technology and product to deliver a choice of more than 160 EV models, manufacturers are relying heavily on discounting to stimulate demand.

Mike Hawes, chief executive of SMMT, said: “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.”

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