Industry figures show EV sales for the first quarter increased 38%, putting the UK on track to meet Zero Emission Vehicle Mandate targets.
Sales of electric vehicles (EVs) have continued on their upward trajectory, delivering their strongest ever start to a year, with battery EV sales for the first quarter up 38% year-on-year.
According to the latest figures from New AutoMotive, 68,000 electric cars were registered in the UK in March, making it the best month on record for EV registrations, as zero-emission models accounted for 21% of the market.
"March has easily broken the record set in September 2024 for the number of EVs sold in a single month," said Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU). "Looking across the entire quarter, EV sales have increased faster than any other drivetrain. Notions of a lack of consumer demand in what is Europe's largest EV market look ever more detached from reality."
In parallel, sales of internal combustion engine cars have continued to decline:
Vicky Edmonds, CEO of trade body EVA England, commented:
"The figures demonstrate a consistently healthy EV market that is bucking the trend of falling petrol and diesel sales this year. With EVs comprising just under one in five new sales last month, the race is on to support UK drivers through the transition. This means more consistent support to ensure EVs are truly affordable and developing a charging network that works for all."
European brand Volkswagen gained a "significant slice" of the UK's electric market, while Tesla's registrations stalled in March amid protests against Elon Musk's involvement in the Trump White House.
New AutoMotive noted that although Tesla remains the UK's leading EV brand, it "looks likely to be eclipsed by others in the coming months."
James Court, director of public policy at Octopus Electric Vehicles, said:
"New AutoMotive's figures confirm the UK's EV policy is paying off. EV sales are surging, with March figures up 38% year-on-year, while consumer choice of high-quality, affordable EVs is growing."
He emphasized the importance of maintaining momentum to ensure ongoing affordability and cleaner air for drivers.
Under the UK's ZEV mandate, carmakers must ensure EVs account for 28% of the market this year.
However, policy flexibilities allow some manufacturers to avoid fines if they fall slightly short of the goal.
New AutoMotive's analysis suggests compliance could be achieved with an EV market share closer to 23%.
"With EV sales likely to continue increasing as the year progresses, the industry is on course to repeat its success of 2024 in meeting the ZEV Mandate challenge," added Walker from ECIU.
The government is consulting on potential changes to the ZEV mandate that would make targets easier to hit. Some manufacturers are lobbying to weaken the new regulations.
New AutoMotive said tariffs on trade with the US are unlikely to impact the UK's EV market, due to limited imports/exports between the two countries.
Figures from the Society of Motor Manufacturers and Traders (SMMT) show:
March 2025 became the largest month ever for EV registrations, with 69,313 new battery EVs hitting the road and market share reaching 19.4%.
Meanwhile, battery manufacturing for BEV production is projected to double globally between 2027 and 2035, according to the Advanced Propulsion Centre UK (APC).
Dr Hadi Moztarzadeh, head of technology trends at APC, said:
"Across Europe, we are seeing a continued deficit of anode and cathode active material, and this looks set to be the case right up until 2035. Localising production is the key challenge."
The UK must localize its battery value chain to meet regulatory frameworks like 'Rules of Origin' by 2027.
The UK EV market's record-breaking start to 2025 confirms strong consumer demand, sector growth, and steady progress toward ZEV mandate goals. However, future success will require strategic investment in battery production and careful management of evolving government policies.