New Car Registrations in March UP by 12.4% - and EVs do very well ahead of VED change

New car registrations in the UK in March 2025 rose by 12.4%, with sales of BEVs jumping 43.2% ahead of new VED charges for EVs.

March is probably the most significant month for new car registrations in the UK as private buyers dive in to a plate change like lemmings and business buyers get spending done before the end of the tax year.

So it’s no surprise to see new car registrations for this March rising by 12.4% to 357,103, the best March figure since 2019.

Sales of petrol cars were pretty much steady at 176,847, with diesel sales continuing to fall (down 10.1% to 20,967), but electrified cars did well with sales of Hybrids up by 27.7% to 56,161, sales of PHEVs up 37.9% to 33,815, and sales of EVs up a whopping 43.2% to 69,313.

In a bit of a turnaround from the trend of increasing Fleet sales and declining Private Sales, Private sales actually rose in March by 14.5% to 227,122, but with an increase in Fleet sales of 11.5% they still account for the biggest part of the market.

Whilst the big jump in EV registrations is good news for car makers, it still only represents a market share of 19.4%, which is a long way short of the ZEV-mandated 28% that manufacturers have to hit to avoid big fines.

EV numbers are also being supported by big, and unsustainable, discounts by car makers, and this month by buyers jumping in to avoid the VED changes for EVs which have now come in to play.

Mike Hawes, SMMT CEO, 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.