The United Kingdom’s new vehicle market posted its strongest March sales tally since 2019, as total car registrations rose 6.6% year-on-year to 380,627 units last month.
However, the Society of Motor Manufacturers and Traders suggests the overall industry outlook is cloudy because most sales reflected orders placed before the Iran war began. The industry body also expressed concerns over consumer confidence and vehicle affordability.
“The headlines belie the costs incurred and the challenges involved,” said SMMT Chief Mike Hawes, noting that March is typically the busiest month in a financial year and that strong demand from private buyers boosted new car registrations.
However, the latest data shows the new vehicle market maintaining its sales uptick, which started in December 2025. Still, the Middle East conflict, now in a two-week ceasefire phase, pushed oil prices beyond the USD 100-barrel mark, creating clouds of uncertainty for economies worldwide.
“We expect the good run of form in the car registrations data will grind to a halt in the coming months, as the weight of surging energy costs and the prospect of (rate) hikes from the (BoE) MPC curbs affordability,” said Elliott Jordan-Doak, a senior economist at Pantheon Macroeconomics, while interacting with Reuters.
According to the United Kingdom’s SMMT, volatile geopolitics and the surge in fuel costs may increase demand for electric vehicles while risking higher energy and supply chain costs.
“Battery electric vehicles recorded their best month in terms of volumes in March, though their overall market share remained at 22.6%, well below the government‑mandated target, opens new tab of 33% for 2026,” the industry body remarked, while stating that Tesla’s new registrations in the European country rose 20% from a year earlier to 8,599 units, trailing Chinese peer BYD’s nearly 134% jump to 15,162 units.
“With uncertainty around the cost of fuel, electric vehicle enquiries are on the up, as consumers look to electric as an attractive alternative to petrol and diesel vehicles,” said Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte.