New car sales accelerate 12.4% with record volume of EV deliveries
Registrations of new cars rose by 12.4 per cent in the 'important' plate-change month of March - and more electric vehicles were sold than any single month before.The Society of Motor Manufacturers and Traders confirms that 357,103 new passenger cars were registered in the UK in March.That's 39,317 more than were delivered in the same month last year and the most since the Covid-19 pandemic.March is one of the two busiest months of the year for car dealers with the arrival of the latest numberplate age identifier - in this instance the '25' plate - driving inflated demand for new models. The trade body celebrated a 'slow return' of private buyers, with sales directly to drivers up 14.5 per cent. Fleet registrations, which have been propping up the new car market for months - also rose 11.5 per dent but business deliveries declined marginally, down 0.3 per cent. A total of 69,313 EV sales in March is also a new record volume for a single month. However, pure electric cars still only represented 19.4 per cent of all deliveries, which is well short of binding sales targets demanded by ministers in 2025. New car sales last month accelerated more than 12% year-on-year to register the best March performance for registrations since pre-pandemic 2019Under the Government's Zero Emission Vehicle (ZEV) mandate introduced last year, at least 28 per cent of new cars sold by each mainstream manufacturer in 2025 must be zero emission, which generally means pure electric.It means sales are almost nine percentage points below the required threshold, which threatens to levy brands who fail to meet the target with fines of up to £15,000 per ZEV below the demanded level. The Government is analysing feedback from a recent consultation on proposed changes to the rules, which includes making it easier for non-compliant manufacturers to avoid fines.Read More How much car tax will YOU pay now? Higher VED rates from 1 April 2025 explained The SMMT said the growth in EV demand last month was likely triggered by the removal of their exemption from car tax from 1 April.Under new rules introduced by Chancellor Rachel Reeves, owners of EVs registered from 2017 - who previously paid no vehicle excise duty (VED) - will now be forced to stump up the same £195-a-year standard-rate of tax as drivers of petrol and diesel models.The wholesale VED changes rung in this week also see new EVs purchased from April with a retail price of £40,000 or more qualify for the 'expensive car supplement' - an additional tax on luxury cars, which is an extra £425 on top of the standard rate (£620 in total) from next year. March is one of the two busiest months of the year for car dealers with the arrival of the latest numberplate age identifier - in this instance the '25' plate - driving inflated demand for new models More EVs were sold in March than any other month on record, with 69,313 registrations in total. Even Tesla, which has seen a massive slump in sales across Europe, posted a 2.4% increase in registrations last monthWhile sales of Tesla cars is crashing across Europe as drivers boycott the brand over Elon Musk's recent close ties with US President Donald Trump, the American EV maker remained relatively flat in the UK, registering a 2.4 per cent increase in deliveries of Model 3s and Model Ys to 7,164 units last month. SMMT chief executive Mike Hawes described March sales as a 'welcome return to growth' and a 'fillip for the industry'.He added: 'Moreover, with March being the best month ever for electric car registrations, there is reason for optimism.'Manufacturers remain committed to the market decarbonisation the country and the environment demands, but we need sustained growth, not a short-term bubble driven by unsustainable manufacturer discounting and drivers rushing to beat a tax hike.'Without substantive Government support for consumers, the current regulatory regime is 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.' Industry body the SMMT said 357,103 new passenger cars were registered in the UK in total during March. That's 39,317 more than were delivered in the same month last year The Ford Puma was March's best-selling carJamie Hamilton, automotive partner and head of EVs at Deloitte, said the arrival of the new '25' registration plate last month had 'delivered a welcome boost to new car sales', reversing a recent downward trend. 'This is particularly significant given that March consistently ranks as the most critical month for the automotive industry, with over 357,000 new cars hitting the roads,' he said.He added that a 'consistent growth' of EV sales should be a 'positive indicator' for the future, though pointed to fleet registrations making up the lion's share of the market. 'Private demand is picking up, but challenges remain in addressing concerns around access to charging points and the time it takes to charge an EV,' he went on.'We're also still waiting on the output from the government's consultation on the ZEV mandate. The industry needs clarity if the transition to electric is going to continue at pace.'Ford's Puma, the nation's best-selling new model for the previous two years, was the most popular in March with 11,132 registrations, extending its lead at the top of the 2025 charts ahead of the Kia Sportage and Nissan Qashqai.
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