The UK’s new car market recorded solid growth in March, but the automotive industry is facing mounting pressure to meet electric vehicle (EV) targets, according to Society of Motor Manufacturers and Traders (SMMT) Chief Executive Mike Hawes.
SMMT data shows that new car registrations rose by 6.6% during the month, an important signal of improving consumer confidence. At the same time, uptake of battery electric vehicles (BEVs) reached a new record, highlighting continued momentum in the transition to zero-emission mobility.
However, Hawes cautioned that these headline figures mask deeper structural challenges.
EV targets lag behind mandate
Despite record uptake, BEVs accounted for just 22.4% of new car registrations in the first quarter, well below the 33% share mandated under the UK’s Zero Emission Vehicle (ZEV) regulations for 2026.
The situation is even more pronounced in the commercial vehicle sector. BEV uptake in the new van market fell by 15.9% in March, representing just a 7.1% share, less than a third of the 24% required this year.
Hawes said the gap between regulatory ambition and market reality is widening, despite significant industry investment.
“Manufacturers have committed billions to EV development and further billions in consumer incentives, but the market conditions remain far tougher than anticipated when these regulations were introduced.”
– Mike Hawes, Chief Executive, SMMT.
Call for policy review amid global pressures
The SMMT is urging policymakers to reassess the UK’s EV transition strategy, particularly in light of ongoing geopolitical and economic uncertainty.
According to Hawes, failing to align regulation with real-world conditions risks undermining long-term investment in the UK’s automotive sector and its broader green growth ambitions.
Supply chain opportunity worth £4.6bn
Despite these concerns, the transition to electrification could deliver substantial economic benefits. New SMMT analysis suggests demand for UK-built automotive components could increase by 80% by 2030, unlocking a potential £4.6bn opportunity for the domestic supply chain.
Recent government backing is seen as a positive step. A £380m commitment towards a major gigafactory in Somerset—expected to leverage £4bn in private investment—has been welcomed by the industry. Additional support through programmes such as DRIVE35 and CAM Pathfinder is also expected to strengthen the UK’s automotive R&D ecosystem.
Industry backs 1.3 million production target
The industry continues to support the government’s ambition to restore UK vehicle production to 1.3 million units annually by 2035.
SMMT this week launched its “Opportunity Auto” campaign, aimed at attracting global investment and reinforcing the UK’s position as a competitive automotive manufacturing hub.
Hawes emphasised that collaboration between government and industry—both domestically and internationally—will be critical to achieving these goals and securing the UK’s long-term automotive future.
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