UK New Car Market Grows In March As EV Demand Strengthens

March delivered a strong performance for the UK automotive sector, with new car registrations reaching 380,627 units—an increase of 6.6% year-on-year and the best monthly performance since 2019.

From our perspective at Commercial Vehicle Contracts, this reflects what we’re seeing across the market: demand remains resilient, particularly across fleet and business channels, while retail activity is beginning to show encouraging signs of recovery.

Fleet and business registrations rose by 4.2% to 218,157 units, continuing to underpin overall market performance. At the same time, retail demand increased by 10.1% to 162,470 units, suggesting a degree of returning consumer confidence despite ongoing economic pressures.

Electrified Vehicles Reach Record Levels

A key highlight from March was the continued growth in electrified vehicles, which achieved a record 196,059 registrations across battery electric, plug-in hybrid, and hybrid models.

Plug-in hybrids (PHEVs) saw particularly strong growth, up 46.9% year-on-year, while hybrid electric vehicles (HEVs) also recorded steady gains. Battery electric vehicles (BEVs) reached a new monthly high, rising by 24.2% to 86,120 units.

While EV market share currently sits just over 22%, below the UK’s Zero Emission Vehicle (ZEV) mandate target of 33% for 2026, the overall trajectory remains very positive. Demand continues to build as more drivers explore electric options and benefit from an expanding range of vehicles.

This gap between current adoption and future targets also highlights the significant growth opportunity still ahead as the market continues to evolve.

Why EV Demand Is Continuing To Build

Several key factors are driving increased interest in electric vehicles.

Firstly, the range of available models has expanded significantly, with more than 160 EV options now on the UK market—giving customers far greater choice across different price points and vehicle types.

Secondly, ongoing fuel price volatility is prompting both businesses and private drivers to look more closely at electric vehicles as a way to gain greater control over long-term running costs.

At the same time, improvements in battery technology and vehicle range are helping to address some of the early concerns around usability, making EVs a more practical solution for everyday driving.

Making EVs More Accessible Through Leasing

While upfront vehicle costs can still be higher in some cases, leasing is playing a crucial role in making electric vehicles more accessible.

By offering fixed monthly payments, reduced upfront costs, and protection from residual value risk, leasing provides a clear and manageable route into EV usage without long-term financial uncertainty.

In the current environment, where both fuel and energy prices can fluctuate, this level of cost certainty is becoming increasingly valuable for customers.

In addition, growing competition between manufacturers is leading to more competitive pricing and stronger offers across the EV market—creating real opportunities for customers to make the switch.

Charging Infrastructure: Improving At Pace

Charging infrastructure continues to be a key area of focus, but it is also one of the fastest-improving parts of the EV landscape.

The UK’s public charging network is expanding rapidly, supported by both government and private investment. New ultra-rapid charging hubs, improved reliability, and better coverage are all helping to make electric driving more practical—particularly for those without access to home charging.

As infrastructure continues to scale, accessibility and convenience will only improve further, supporting the next phase of EV adoption.

Businesses Leading The Transition

One of the most notable trends is the role businesses are playing in driving EV adoption.

Fleet and company car drivers are leading the transition, supported by favourable taxation, sustainability targets, and the need to manage whole-life vehicle costs more effectively.

This is having a wider impact on the market, as more drivers gain first-hand experience with electric vehicles—helping to build confidence and familiarity that will ultimately support greater retail adoption over time.

Market Outlook: Steady Progress With Strong Momentum

Looking ahead, the direction of travel is clear. EV adoption is expected to continue rising throughout 2026, supported by increasing model availability, improving infrastructure, and ongoing innovation across the sector.

While the transition may progress at a more measured pace than originally anticipated, momentum is building in a way that is both sustainable and commercially viable.

For customers, the conversation is increasingly shifting from whether to go electric to when.

Jaecoo 7 Tops March Sales Charts

March also saw the Jaecoo 7 emerge as the UK’s best-selling new car, with over 10,000 units registered during the month and more than 15,000 sold year-to-date.

Its strong performance reflects growing demand for vehicles that combine efficiency, advanced technology, and everyday practicality. Notably, the plug-in hybrid variant accounted for the majority of sales, underlining the continued appeal of hybrid solutions as part of the transition towards electrification.

While not available as a fully electric model, the Jaecoo 7 offers a well-balanced alternative for drivers looking to move into electric driving without fully committing.

The Jaecoo 7 SHS pairs a 1.5-litre turbocharged petrol engine with an electric motor, delivering a combined output of 204hp. It provides up to 56 miles of electric-only driving—ideal for daily use—before seamlessly switching to petrol for longer journeys.

With a total combined range of approximately 745 miles, it removes range concerns while still delivering the benefits of lower-emission driving.

For both businesses and private drivers, it represents a practical and flexible step into electrification.

Available now through flexible and cost-effective leasing options at Commercial Vehicle Contracts.

Important Information

Vehicle specifications and technical data are supplied by third parties and manufacturers and may be subject to change without notice. Images are for illustration purposes only and may include optional features.

For full details, please contact Commercial Vehicle Contracts  on tel: 01424 863456

Why Commercial Vehicle Contracts is your EV partner:

Leasing is the smart, modern way to drive a brand-new vehicle. Discover some of the benefits that make it the preferred choice for thousands of UK drivers.

✅ Low initial outlay: Get started with minimal upfront costs compared to a large purchase deposit.

✅ Fixed monthly budgeting: Protect your cash flow with predictable, fixed monthly payments for the duration of your contract.

✅ Always drive the latest: Upgrade to a new model every 2-5 years, ensuring you always have the newest technology, safety features, and maximum efficiency.

✅ No depreciation worries: We bear the risk of the vehicle’s future value, so you don’t have to worry about resale value or market fluctuations.

✅ Professional image: Enhanced business presentation and credibility.

✅ Latest compliance: Always meet current emissions and safety standards.

✅ Expert guidance: Our dedicated team will solve all your lease queries and offer expert advice.

✅ A seamless, all-inclusive service: Our lease process is designed to be straightforward, saving you both time and money. We manage everything to get you driving your new van quickly and efficiently.

✅ 24/7 customer portal: Manage your lease easily online, track orders, check vehicle details, and contact your account manager anytime.

✅ Dedicated account management: Expert support throughout your lease term.

✅ Tax efficiency: VAT reclaim and capital allowance benefits.

Explore our extensive range of electric cars and vans available for lease.

Speak to our team today to find the right solution for your needs and see how Commercial Vehicle Contracts can drive your business forward.