A rule change means a grant has been uplifted to help those without driveways (Image: 24K-Production via Getty Images)
March proved to be a record-breaking month for electric car registrations, with demand surging as fuel prices continue to climb, according to new figures. Electrified vehicles accounted for 196,059 registrations last month, the Society of Motor Manufacturers and Traders (SMMT) revealed.
Battery electric car registrations reached 86,120 in March, a leap of 24.2 percent compared with the same month last year, setting a new all-time high. In addition, plug-in hybrid registrations rocketed by 46.9 percent year-on-year, while hybrid electric vehicles rose by 7.3 percent.
This comes against a backdrop of soaring oil and gas prices driving up the cost of fuel, fuelled by the ongoing conflict in the Middle East. The impact has been felt by drivers at the pumps, and the SMMT suggested it could spark greater interest in electric vehicles (EVs), which are partly or fully powered by batteries.
Average unleaded petrol prices have risen by approximately 18 percent since the Iran war escalated at the end of February, reaching 157p a litre, according to the latest figures from the RAC. The surge has been even more pronounced for diesel, which has jumped by a third to an average of 189p a litre.
Despite the mounting pressure on fuel costs, the overall new car market expanded by 6.6 percent in March compared with last year, with 380,627 new vehicles registered, the SMMT confirmed. This marked the strongest monthly sales performance since 2019, before the pandemic took hold. March is traditionally the busiest month for new car sales, as many buyers prefer to hold off until the number plate change.
Public chargers are now widespread and fast – but they are pricey if you just turn up and pay (Image: Steve Smith)
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Mike Hawes, the SMMT’s chief executive, noted that “much of March’s performance will be from orders placed before the start of the Iran conflict” but warned that the war “threatens to raise the cost of living, undermining consumer confidence”.
Despite this, Ian Plummer, chief customer officer for vehicle marketplace Autotrader, revealed that the platform had recorded a significant spike in enquiries for new electric vehicles 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.”
However, the SMMT expressed concern that despite growing EV demand, its share of the overall car market stood at roughly 22 percent last month. This falls considerably short of the Government’s zero-emission vehicle (Zev) mandate, which stipulates that at least 33 per cent of cars sold by each manufacturer this year must be zero-emission, typically meaning pure battery electric vehicles.
Mr Hawes called for an “urgent review of the transition” to electric vehicles, stating that recent geopolitical developments had made the matter all the more pressing.
A spokesperson for the Department for Transport said the Government was working to support businesses through the shift to electric by channelling investment into areas such as EV manufacturing and expanding the UK’s charging infrastructure. The Government has also recently increased the grant available to those without a driveway, such as tenants, who wish to install an EV charger, raising it from £350 to £500.
“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.”
