The UK saw its best-ever month for electric vehicle registrations, with 86,000 new sales, as drivers try to get their models in "new reg plate month".
Last month, the UK new car market grew by 6.6 per cent, making it the best March and best month overall since before the Covid pandemic.
More than 380,000 car sales were registered in March, with electric vehicles capturing 22.4 per cent of the total market share, in addition to a 24.2 per cent year-on-year change.
Drivers were also swayed away from petrol and diesel models, with a huge 47 per cent rise in plug-in hybrid sales (49,671 sales) and a modest 7.3 per cent rise in pure hybrids (60,268 sales).
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While it is too early to tell the impact of the fuel price crisis stemming from the war in Iran, sales of new petrol and diesel cars continue to fall.
Although 166,000 new petrol cars were registered, the market share of the powertrain continues to decline, down to 43.6 per cent. It also saw sales decline 6.1 per cent compared to the same time last year.
Just 18,571 diesel vehicles were sold in March, as drivers turn their backs on internal combustion engines, bringing the fuel type's market share below five per cent - the lowest of any powertrain.
Mike Hawes, chief executive of the SMMT, 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.
More than 86,000 electric cars were registered in 'new reg plate month'
|GETTY/PA
"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."
Mr Hawes also noted that, while electric car sales were impressive, they fall short of targets set out in the Government's Zero Emission Vehicle (ZEV) mandate.
The mandate outlines that manufacturers must have a certain percentage of sales come from electric vehicles, including a 33 per cent target for the end of the year.
These totals will continue to rise over the coming years, reaching 80 per cent in 2030 and 100 per cent five years later, when only zero emission cars will be on sale.
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March was the best-selling month in the UK since 2019
|SMMT
Manufacturers can use certain loopholes to achieve the ZEV mandate targets, including selling low-emission vehicles or trading credits with other automakers.
Despite this, experts, including Mr Hawes, have issued a warning to the market that an "urgent review" is needed, especially given the "record level of incentives" from car brands.
Labour has confirmed that a review will take place in early 2027, although this is too late, according to some experts, with Mr Hawes stating that a review is needed to "secure a sustainable market, economic growth and the UK’s net zero ambitions".
The SMMT acknowledged the potential impact of the Iran war on car sales, with an uptick in EVs expected, although energy and supply chain costs could affect consumer confidence and spending power.
The Jaecoo 7 PHEV was the best-selling vehicle in March, with more than 10,000 new registrations
| JAECOOJamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: "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.
"While concerns around the cost of living persist, manufacturers and dealers face the challenge of enticing consumer spending at a time when many are protecting their budgets."
The Electric Car Grant has frequently been cited as a lifeline for motorists by helping them save up to £3,750 off the price of a new EV with a list price of £37,000 or less.
More than 85,000 drivers have already made use of the £2billion Government scheme, which features some of the best-selling electric models, like the Ford Puma Gen-E and Volkswagen ID.3.