UK new car sales rose for a fourth consecutive month in March

Maria Bengtsson, EY UK & Ireland Mobility Leader, comments on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for March 2026:

“UK new car sales rose for the fourth consecutive month in March, with a 6.6% year-on-year increase to 380,627 units. The recent upward trajectory is testament to the resilience of the UK’s automotive industry amid a range of headwinds, including a complex regulatory landscape and the conflict in the Middle East. However, it is uncertain whether this upward trend will continue in the short term, as ongoing geopolitical disruption is likely to push up fuel prices and have a downside effect on consumer and business sentiment.

“Battery Electric Vehicle (BEV) registrations saw a significant 24.2% year-on-year increase in March as the UK’s transition towards cleaner and greener transport continued to gather momentum. However, the UK’s BEV market share is 22.6% this year-to-date, down from 24.2% in February and still considerably below the 33% Zero Emissions Vehicle (ZEV) Mandate target for 2026. Ongoing disruption to global supply chains due to the conflict in the Middle East could impact production, extend lead times and reduce demand for vehicles of all powertrain technologies, limiting the extent of any short-term rise in registrations and potentially reversing some of the automotive industry’s recent green shoots.

“Both Plug-in Hybrid Electric Vehicle (PHEV) and Hybrid sales rose last month, with 46.9% and 7.3% increases respectively – another sign that alternative powertrain technologies continue to rise in popularity. In keeping with recent trends, both diesel (-11.4%) and petrol (-6.1%) sales declined year-on-year in March, and this pattern is expected to continue with fuel prices rising and consumers increasingly turning towards cleaner and greener vehicles.”

Retail sales continued their recent strength in March

Maria added: “Retail sales saw another month of growth in March, with a substantial 10.1% year-on-year rise, a crucial source of support for automakers’ profitability. Meanwhile, fleet sales continued the modest but consistent growth seen in recent months, with a 3.5% year-on-year rise in March. The forward-looking landscape for the automotive industry appears volatile, but the progress made in recent months has provided auto businesses with a solid footing as they prepare for a particularly challenging period ahead.”