March has been the best month on record for electrified vehicle volumes - including plug-in hybrids, hybrids and battery electric vehicles, accounting for 196,059 registrations, the SMMT has reported.

Plug-in hybrid (PHEV) registrations rose 46.9% to take a 13.0% market share, while hybrid electric vehicles (HEVs) increased 7.3% to take 15.8% of the market. Battery electric vehicles (BEVs) reached a new record, up 24.2%, to 86,120 registrations in the month.

However, with a market share of only 22.6% for the month, and 22.4% year to date, uptake is far from the Zero Emission Vehicle (ZEV) Mandate target, which demands 33% for 2026.

The SMMT warns that despite rising EV volumes, conditions have changed from those assumed when the mandate was set. At the start of 2026, battery costs were more than 30% higher than expected and industrial energy prices around 80% above 2021 levels, while public charging can cost over 140% more than five years ago. Future costs and, therefore, demand are even more uncertain given the Iran crisis, which may spark interest in EVs but risks pushing up energy and supply chain costs, increasing the cost of living and undermining consumer confidence.

The SMMT says that industry’s calls for a rapid review of the transition have therefore been given added urgency.

Mike Hawes, SMMT Chief Executive, said: "The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy. However, the headlines belie the costs incurred and the challenges involved. Much of March’s performance will be from orders placed before the start of the Iran conflict, which threatens to raise the cost of living, undermining consumer confidence. Against this backdrop, and with the EV market falling further away from mandated levels despite record levels of incentives, an urgent review of the transition is required to secure a sustainable market, economic growth and the UK’s net zero ambitions."