Fuel price shock drives demand for electric cars - but sales remain well short of government targets
Drivers bought a record number of electric cars last month as the war in Iran sent fuel prices soaring – but sales are still well short of government targets.Some 86,120 new electric vehicles (EVs) took to Britain’s roads in March – up 24.2 per cent on a year earlier and the most ever in a single month, according to the Society of Motor Manufacturers and Traders (SMMT).Business was boosted by the arrival of the new registration plates, as it always is in March, and the best-selling new car was China’s Jaecoo 7, which has been dubbed the ‘Temu Range Rover’ thanks to its affordability.At £35,000, the SUV costs around half the price of the British icon.But while demand for electric cars is rising, thanks in part to concerns over prices at the pumps as conflict rages in the Middle East, the SMMT called on ministers to water down green targets for the industry.EVs accounted for just 22 per cent of car sales last month – well below the Government’s zero-emission vehicle (ZEV) mandate, which states at least 33 per cent of cars sold by each manufacturer this year must fall into this category. The best-selling new car in March was China’s Jaecoo 7, pictured, which has been dubbed the ‘Temu Range Rover’ thanks to its affordabilitySMMT chief Mike Hawes said an ‘urgent review of the transition’ to electric was needed and had been given more urgency by geopolitical events.He said car makers are having to slash the price of electric cars to boost demand in a desperate bid to hit the target – with those that fail facing ‘significant’ fines.The SMMT said the rising cost of fuel on the back of the Iran war could spark more interest in EVs.Average unleaded petrol prices are up by about 18 per cent since the Iran war escalated at the end of February, to 157p a litre, according to the latest data from the RAC.The spike has been more prominent for diesel prices, which have jumped by a third to an average of 189p a litre.But Hawes warned the conflict could hit demand for new cars as inflation takes off and the economy flounders.‘The strongest new car market since 2019, with the highest-ever volume of EV registrations, is a boost to the industry and the economy,’ he said.‘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.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Fuel price shock drives demand for electric cars - but sales remain well short of government targets
