LONDON, April 7 (Xinhua) -- The UK new car market recorded its strongest March performance since 2019, but electric vehicle (EV) uptake continues to fall short of government targets, according to data released Tuesday by the Society of Motor Manufacturers and Traders (SMMT).
A total of 380,627 new cars were registered in March, up 6.6 percent year-on-year, marking the best March - and overall monthly performance - since 2019.
Growth was driven mainly by private demand, with retail registrations rising 10.1 percent to 162,470 units. Fleet registrations increased 3.5 percent to 208,853 units, while business registrations rose 18.8 percent, albeit from a relatively low base.
Electrified vehicles reached a record monthly total of 196,059 units, underscoring continued industry investment in decarbonisation. Battery electric vehicles (BEVs) rose 24.2 percent to 86,120 units, while plug-in hybrids surged 46.9 percent and hybrid electric vehicles grew 7.3 percent.
However, despite record volumes, BEVs accounted for just 22.6 percent of the market in March, significantly below the 33 percent share required under the government's Zero Emission Vehicle (ZEV) mandate for 2026.
SMMT said the shortfall highlights mounting pressure on manufacturers, who are facing higher-than-expected battery costs and elevated energy prices, while relying heavily on discounting to stimulate demand.
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 industry body also warned that geopolitical uncertainty, particularly tensions involving Iran, could further weigh on consumer confidence by pushing up living costs and supply chain expenses.
"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," SMMT Chief Executive Mike Hawes said, calling for an urgent review of the transition to zero-emission vehicles.
The UK automotive sector remains a key pillar of the economy, generating 92 billion pounds (115 billion U.S. dollars) in turnover and supporting hundreds of thousands of jobs, according to SMMT. ■