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Electric vehicles (EVs) had their strongest ever start to the year, with sales of EVs up 38% on 2024 in the key month of March according to data from New AutoMotive.
The data signal a sustained rise in demand for electric vehicles as consumers are attracted by running cost savings and a better driving experience.
Tesla’s UK registrations stood still in March, essentially unchanged from a year earlier. Amid surging sales of EVs, Tesla therefore shed some of its share of UK EV registrations, while European brand Volkswagen gained a significant slice of the electric market. Tesla is still the UK’s leading electric brand, but looks likely to be eclipsed by others in the coming months.
At the same time, sales of petrol and diesel cars continue to decline, with petrol registrations falling by 25% in Q1 2025 when compared to Q1 2024, and diesel registrations continued to slide by 15%, accounting for just 5.5% of all new cars.
Under the UK’s Zero Emission Vehicle (ZEV) mandate, car makers are required to meet a 28% BEV sales target this year. However, New AutoMotive’s analysis suggests that compliance can be achieved with closer to 23% EV sales, thanks to policy flexibilities that allow manufacturers to offset targets with cleaner hybrid and petrol models.
With BEV sales expected to strengthen over the course of the year, carmakers are expected to collectively hit that target by the end of the year. Some already have, with VW – the UK’s biggest car seller – currently achieving compliance. BMW, too, have a surplus of ZEV mandate credits.
Tariffs on trade with the US are unlikely to have an impact on the UK’s EV market, given the limited imports of EVs from the US and limited exports of EVs to the US.
“March is a key month for car sales, and the data shows that demand for electric vehicles is surging, with the biggest month ever for sales of clean cars.
“The UK’s ZEV mandate is successfully driving up EV sales and enabling more drivers to go electric and benefit from cost savings and a better driving experience.
“As ministers consider the future of the UK’s ZEV mandate the message from the data is clear: don’t mess with success.”
Dan Caesar, CEO, Electric Vehicles UK (EVUK):
“1 in 5 new car sales being battery electric over the last 8 months is testament to end-user interest in efficient technology; especially in such challenging economic conditions. An average of 24% of new car sales since the general election, as opposed to 17.5% in the prior year, shows that the Government’s zero emission vehicle resolve is encouraging confidence in EVs, as are the stories of real-life drivers.
“With more and more affordable battery EVs entering the country in 2025, and a thriving used sector, the UK is in the process of cementing its position as the leading BEV market in Europe.”
