Motorists face a compelling case to switch to electric and hybrid vehicles amid skyrocketing fuel prices and record-breaking sales of electrified cars. March marked the strongest month ever for such registrations, with 196,059 units hitting the roads, according to Society of Motor Manufacturers and Traders (SMMT) data. This surge reflects a clear change in driver preferences driven by economic pressures.
Fuel Prices Reach Multi-Year Peaks
Petrol prices have climbed to an average of 157.02 pence per litre—the highest since May 2024—following a 12% rise over five weeks linked to the Iran conflict. Some areas report prices topping £2 per litre. Diesel fares even worse at 189.42 pence per litre, the priciest since December 2022, per RAC figures.
Running Costs Favor Electrified Options
Tony Redondo, founder of Cosmos Currency Exchange, highlights how rising energy costs make electric vehicles (EVs) a straightforward choice. He notes that EVs run at about 6 pence per mile, compared to roughly 17 pence for petrol cars. This cost difference resonates strongly with budget-conscious households.
Breakdown of March Registrations
All electrified categories saw gains:
- Battery electric vehicles (BEVs) increased 24.2% to 86,120 units.
- Plug-in hybrids (PHEVs) jumped 46.9%, claiming 13% market share.
- Hybrid electric vehicles (HEVs) rose 7.3%, holding 15.8% of the market.
Top EVs include Tesla Model Y and Model 3, MG4, Volkswagen ID.3 and ID.4, and BYD models.
SMMT chief executive Mike Hawes stated: “The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy.”
Used Market Prices Drop, Boosting Accessibility
Falling prices on used models further ease the transition. The AA Cars Used Car Index reports the average price for the 20 most popular used EVs and hybrids fell to £16,553 in the first quarter of 2026—a 1.7% quarterly drop and 7.1% lower year-over-year.
James Hosking, managing director of AA Cars, explained: “Used EV and hybrid prices continued to soften, helping make low-emission cars more attainable for a wider group of buyers.” Popular used options include the Toyota Yaris hybrid, Nissan Leaf, and Renault Zoe.
Real-World Benefits and Challenges
Steven Greenall, a mortgage and protection adviser, switched from diesel to an EV in October 2025 and reports high satisfaction. “With the surge in fuel prices recently, it’s been very satisfying as we are able to charge at home. Every day you leave the house with ‘a full tank’ and who drives over 200 miles a day?”
However, Katrina Young, digital transformation strategist at KYC Digital, cautions that hurdles remain. “The economics are clear, but the switch is not straightforward,” she said. “Charging infrastructure is fragmented, and long journeys require planning that petrol drivers have never needed to think about.”
