UK new car sales post strong March, but industry warns Iran crisis threatens outlook

• Reuters

• Published On Apr 7, 2026 at 02:32 PM IST

Total car registrations rose to 380,627 units in March, typically the busiest month of the year.

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Britain’s new car registrations in March grew nearly 7 per cent year-on-year, the best performance for the key sales month since 2019, driven largely ‌by orders ⁠placed before the ⁠Iran crisis began, the industry said on Tuesday.

Total car registrations rose to 380,627 units in March, typically the busiest month of the year, the Society of Motor Manufacturers and Traders (SMMT) said.

“The headlines belie the costs incurred and the challenges involved,” ⁠SMMT Chief ‌Mike Hawes said in a statement. “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.” SMMT said the Middle East conflict may spark interest in Electric vehicles (EVs) but rising energy and supply chain costs can undermine consumer confidence. The conflict is ‌projected to result in higher energy costs for Britain. Battery electric vehicles recorded their best month in terms ⁠of volumes in March, though their overall market share remained at 22.6 per cent, well below the government-mandated target of 33 per cent for 2026, the SMMT said. Tesla’s UK new registrations rose 20 per cent to 8,599 units, trailing Chinese peer BYD’s 133 per cent jump to 15,162 units.