Rocketing fuel prices have led to a surge in sales of electric cars, according to industry data. The Society of Motor Manufacturers and Traders reported that March marked the highest number of new car registrations since 2019, a significant month for the industry due to number plate changes that attract buyers.
In March, a total of 380,627 vehicles were registered, marking a 6.6% increase from the previous year. The sharp rise was primarily fueled by record-breaking sales of electrified vehicles, reaching 196,059 units. Battery electric cars saw a remarkable 24% surge, setting a new record with 86,120 registrations in the month.
The top-selling model in the UK for March was the Jaecoo 7, a Chinese-made vehicle, which claimed the number one spot for the first time. Jaecoo, which entered the UK market in February 2025, experienced a substantial 570% increase in sales compared to the previous year, surpassing well-established brands like Volvo and Tesla.
The demand for plug-in hybrid cars also saw a significant increase of 46.9%, totaling nearly 49,700 units, while sales of hybrid electric vehicles rose by 7.3%. In contrast, sales of petrol and diesel cars continued to decline, with plans in place to ban their sale in the UK by 2030.
Despite petrol cars remaining the most popular choice in March, with around 166,000 vehicles registered, sales were down by 6% year-on-year. Diesel cars experienced a more significant drop of 11.4% in sales, with a market share of less than 5%.
The spike in fuel prices attributed to the Middle East crisis has likely fueled interest in electric and hybrid vehicles as an alternative. While electric car owners dodge rising fuel costs, they may face higher electricity charging expenses.
Although electric vehicles accounted for 22.6% of all sales in March, the industry warns that more progress is needed to meet the government’s Zero Emission Vehicle mandate target. Industry leaders are calling for a review of the transition to ensure a sustainable market and support the UK’s net zero ambitions.
Amid global tensions affecting oil prices, consumer behavior is shifting towards more sustainable options like electric vehicles. The government’s Electric Car Grant has made EVs more affordable, with incentives attracting a growing number of drivers towards electric mobility to combat fluctuating fuel costs.