UK electric vehicle sales hit record high in March 2026

April 19, 2026

The UK new car market achieved a remarkable 6.6% growth in March 2026 compared to the same period last year, marking its strongest performance since 2019. According to the Society of Motor Manufacturers and Traders (SMMT), a total of 380,627 new cars were registered in March. Battery electric vehicles (BEVs) saw registrations of 86,120 units, setting a new monthly record. However, these figures fell short of the government’s regulatory sales target.

The total number of registered electricfied vehicles, including battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs), reached a record high of 196,059. BEV registrations increased by 24.2% year-over-year, while plug-in hybrid electric vehicles (PHEVs) rose by 46.9%, and HEVs grew by 7.3%.

Despite these record sales, the market share of electric vehicles (EVs) in March remained at 22.6%. This figure significantly lags behind the UK government’s target of 33% for Zero Emission Vehicles (ZEV) by 2026. The SMMT noted that battery prices have remained over 30% higher than expected, and industrial energy prices have surged by 80% compared to 2021, indicating that the macroeconomic environment has diverged from the optimistic outlook at the time of regulatory implementation.

External uncertainties are also putting pressure on demand. The recent crisis in Iran and conflicts in the Middle East have dampened consumer sentiment and disrupted supply chains, leading to increased fuel costs and overall living expenses.

The CEO of SMMT said March’s strong performance was largely driven by orders placed before the escalation of the conflict. He added that, despite record discounts and incentives, the market is drifting further from government targets, underscoring the need for a policy review to support a sustainable transition.

To stimulate demand, the UK government recently introduced a new Electric Vehicle Grant (EVG) program, offering support of up to $5,000. This grant applies to eco-friendly models certified for production priced under $49,000. While there are expectations that this support will aid in expanding adoption, experts emphasize the need for fundamental solutions, such as enhancing charging infrastructure and stabilizing energy costs, to achieve the ambitious goal of banning internal combustion engine sales by 2030.