New car market rose 12.4% in March

Registrations of new cars rose by 12.4% last month, figures show.

Industry body the Society of Motor Manufacturers and Traders (SMMT) said 357,103 new cars were registered in the UK in March.

That compares with 317,786 during the same month last year.

It was the strongest March for registrations since 2019.

March is a key month for the automotive industry as new registration plates are introduced, which traditionally leads to higher demand and is a strong indicator of annual performance.

Uptake of pure battery electric new cars reached a record monthly total of 69,313 units.

This represented a market share of 19.4%.

Under the Government’s zero emission vehicles (Zev) mandate, at least 28% of new cars sold by each manufacturer this year must be zero emission, which generally means pure electric.

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.

The SMMT said the year-on-year market share growth for EVs from 15.2% to 19.4% could have been partly driven by the removal of their exemption from the vehicle excise duty expensive car supplement from April 1.

SMMT chief executive Mike Hawes said: “A welcome return to growth, and substantial growth at that, is a fillip for the industry.

“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.”

The UK’s automotive industry is expected to be affected by President Donald Trump’s decision to impose a 25% tariff on cars imported to the US.

Some 16.9% of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.

Ian Plummer, commercial director of online vehicle marketplace Auto Trader, said: “March was positive for the new car market, but the impact of the tariffs enforced this week and their impact on imports into the US will be the elephant in the room that could also cause significant consequences for the UK car market.

“That said, brand and retailer incentives seen so far in 2025 are successfully drawing buyers back into UK showrooms and converting pent-up demand.”