Electric car sales hit record high in March while fuel prices surge again
March was the best month ever for electric car registrations, with demand surging while fuel prices have continued to rise, new data shows.
Electrified vehicles accounted for 196,059 registrations last month, the Society of Motor Manufacturers and Traders (SMMT) said. Battery electric car registrations totalled 86,120 in March, a jump of 24.2% compared with the same month last year and a new record high. Furthermore, plug-in hybrid registrations soared by 46.9% year-on-year, while hybrid electric vehicles increased by 7.3%. It comes in the context of soaring oil and gas prices pushing up the cost of fuel, on the back of the conflict in the Middle East. This has been impacting drivers filling up at the pumps, and the SMMT suggested that it may spark more interest in electric vehicles (EVs), which are partly or fully-powered by batteries. Average unleaded petrol prices are up by about 18% since the Iran war escalated at the end of February, to 157p a litre, according to the latest data from the RAC. The spike has been more prominent for diesel prices which have jumped by a third to an average of 189p a litre. Despite the pressure on fuel costs, the overall new car market grew by 6.6% in March, compared with last year, with 380,627 new vehicles registered, the SMMT said. This represented the best monthly sales performance since 2019, prior to the pandemic. March is typically the busiest month of the year for new car sales because many buyers prefer to wait for when numberplates change. Mike Hawes, the SMMT’s chief executive, said that “much of March’s performance will be from orders placed before the start of the Iran conflict” but said the war “threatens to raise the cost of living, undermining consumer confidence”. Nevertheless, Ian Plummer, chief customer officer for vehicle marketplace Autotrader, said the platform had registered a surge in inquiries for new EVs last month. “Interest has picked up sharply as fuel prices rise, with new EV inquiries on our platform surging between February and March – the equivalent of one every minute last month,” he said. “If that online intent converts into sales, progress will follow. “With a wave of new models, deeper discounts and lower running costs, more buyers are starting to see EVs as a way to take control of their energy costs. “The market may well be fast approaching an EV affordability tipping point.” But the SMMT raised concerns that while EV demand may be picking up its share of the overall car market stood at about 22% last month. This is significantly below the Government’s zero-emission vehicle (Zev) mandate, which says that at least 33% of cars sold by each manufacturer this year must be zero emission, which generally means pure battery electric. Mr Hawes said that an “urgent review of the transition” to electric was needed and had been given more urgency by geopolitical events. A spokesperson for the Government’s Department for Transport said it was trying to support businesses in the transition to electric by investing in areas such as EV manufacturing and building up the UK’s charging network. “Our Electric Car Grant is making EVs cheaper and more accessible than ever,” they said. “Over 85,000 drivers have already saved up to £3,750 when buying a new EV, and we’re saving renters £500 off the cost of installing home chargers unlocking cheaper charging rates for residents – and with global price fluctuations at the petrol pumps, making the switch has never made more sense.”
Published: by Radio NewsHub