The new car market benefitted from a 12.4% boost in March as uptake rose to 357,103 units, according to the latest figures from the Society of Motor Manufacturers and Traders.
This growth, in the most important month of the year for the new car market, builds on the March 2024 performance, where uptake rose by 10.4%. As a result, this year’s ‘new plate’ month represents the best March performance since 2019.
Welsh registrations rose to 11,597 last month compared with 10,911 new cars last year, a rise of 6.29%.
Fleet registrations rose 11.5%, while business buyers decreased by a marginal -0.3%. There was also a recovery in private buyer uptake following last year’s lacklustre performance, with a 14.5% rise in registrations.
All types of electrified vehicles recorded growth in the month, with hybrid electric vehicles (HEVs) up 27.7%, plug-in hybrids (PHEVs) up 37.9%, and battery electric vehicles (BEVs) up a massive 43.2% as manufacturers incentivised uptake with significant discounting.
As a result, March became the largest month ever for registrations of electric cars. Some 69,313 new cars reached the road as manufacturers sought to deliver ever more zero emission vehicles to drivers during the new ‘25 plate’ month, which usually accounts for around 16% of annual registrations and, as such, provides a strong indicator of likely overall annual performance.
While EV market share improved significantly on March 2024, at 19.4% it remains more than eight percentage points behind targets set by the ZEV Mandate. Furthermore, given the VED Expensive Car Supplement can now apply to eligible new EVs from 1 April – potentially raising ownership costs for most EV drivers by more than £2,000 over the next six years – the March EV performance will have been boosted by shrewd buyers seeking to get ahead of the taxation increase. This underscores the challenge facing manufacturers whose 2025 EV sales must accelerate to 28% share over the course of the year.
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The top ten cars registered in Wales during March were: Ford Puma, MG HS, Toyota Yaris, Kia Sportage, MG ZS, Nissan Qashqai, Volvo XC40, Nissan Juke, Toyota Aygo X, and Peugeot 2008. |
Manufacturers continue to incentivise EVs, incentives that cost the industry some £4.5 billion last year. Investment in product development is also bringing ever greater choice to consumers, with more than 130 EV models now available across every size category, and average range now reaching above 290 miles – more than double the average weekly mileage.4 Year to date, however, BEV uptake comprises 20.7% of the market, highlighting the importance of government incentives and mandatory targets for chargepoint rollout to reassure consumers and stimulate EV demand.
While EV market share improved significantly on March 2024, at 19.4% it remains more than eight percentage points behind targets set by the ZEV Mandate.
Furthermore, given the VED Expensive Car Supplement can now apply to eligible new EVs from 1 April – potentially raising ownership costs for most EV drivers by more than £2,000 over the next six years – the March EV performance will have been boosted by shrewd buyers seeking to get ahead of the taxation increase.
This underscores the challenge facing manufacturers whose 2025 EV sales must accelerate to 28% share over the course of the year.
Manufacturers continue to incentivise EVs, incentives that cost the industry some £4.5 billion last year. Investment in product development is also bringing ever greater choice to consumers, with more than 130 EV models now available across every size category, and average range now reaching above 290 miles – more than double the average weekly mileage.
Year to date, however, BEV uptake comprises 20.7% of the market, highlighting the importance of government incentives and mandatory targets for chargepoint rollout to reassure consumers and stimulate EV demand.
