EVs hit record sales in reaction to surging fuel prices and availability of cheaper Chinese models

Electric car sales reached record levels in the new month of March, skyrocketing by almost a quarter as drivers reacted to rising fuel prices and bought cheaper models from Chinese brands.

In fact, the best-selling new car last month was from a Chinese entrant: the £35,000 Jaecoo 7, known as the ‘Temu Range Rover’ thanks to its impressively affordable price, with the SUV costing around half the price of the British icon.

The Society of Motor Manufacturers and Traders (SMMT) confirmed on Tuesday morning that around 86,120 new electric vehicles hit UK roads in March.

But in an environment where sales are rising across all fuel types, electric vehicles still account for only 22.6 percent of registrations; It is well short of the 28 percent target mandated by the government for this year.

While EVs have reached record monthly sales, interest in plug-in hybrid (PHEV) models has also increased by almost 50 percent, driven mainly by manufacturers originating from China.

Jaecoo’s 7 outsold all other models in showrooms, accounting for more than one in five new PHEV registrations, achieving 10,061 sales in the industry’s crucial March month as the popularity of Chinese models continues to grow.

Jaecoo recorded a 574 percent increase in sales with more than 12,000 models delivered last month; This figure is more than Renault, Mini and Mazda. Its sister brands Omoda (5,917 sales) and Chery (4,544 sales) also showed an increase in sales orders.

However, BYD was the most affected; It registered 15,162 cars, displacing Peugeot, Hyundai, Skoda, Land Rover, Volvo and electric vehicle rival Tesla.

March was an impressive month in terms of automobile sales in general. Manufacturers delivered the most new models in March since 2019

The UK new car market overall grew by 6.6 per cent in March; this was usually the busiest month of the year due to the introduction of the latest license plate age identifier.

In total, manufacturers replaced 380,627 new vehicles; This was the highest figure for the third month of the year since 2019.

What increased the demand was customers stepping into the showrooms.

Retail registrations rose 10 percent to 162,470 units; This means that more than two in five deliveries (42.7 percent) were orders placed from dealerships.

Are rising fuel prices increasing the appetite for EVs?

Most of these new cars were electric models; Because drivers in the country reacted to the increasing gasoline and diesel prices triggered by the limited oil supply resulting from the war in Iran last month.

The RAC confirmed this morning that oil prices have risen an average of 24 pence (18 per cent) to 157 pence since the US and Israel launched their first attack on Iran on February 28.

Diesel prices rose even faster; The price of the liter has risen by a third, rising a whopping 47p to 189.4p.

These prices have apparently opened drivers’ eyes to the possibility of owning an electric vehicle and reducing driving costs.

Between EVs, PHEVs and traditional self-charging hybrid vehicles (HEVs), around 196,059 electric vehicles found homes in the UK last month.

Official sales statistics show that more than a third (36.7%) of all deliveries are plug-in cars, as drivers continue to switch to greener models.

However, the SMMT has expressed ongoing concerns that sales are falling short of the Government’s Zero Emission Vehicle (ZEV) mandated targets, which require carmakers to increase their share of EV deliveries to 28 per cent by the end of 2026.

According to various reports, rising fuel prices triggered by the shortening of oil supplies due to the war in Iran has led to increased interest in electric vehicles.

Between EVs, PHEVs and traditional self-charging hybrid vehicles (HEVs), around 196,059 electric vehicles found homes in the UK last month

SMMT chief executive Mike Hawes said March was ‘a boost to the industry and the economy’ but warned that many orders would have been placed before the start of the Iran conflict, so he suggested the growth in electric vehicles did not fully reflect the shift in appetite caused by rapidly rising petrol and diesel prices.

He also expressed concern that orders would decline in the coming months as the war ‘threatens to increase the cost of living and undermine consumer confidence’.

He added: ‘In this environment, and with the electric vehicle market moving further away from mandatory levels despite record levels of stimulus, the transition needs to be urgently reviewed to secure a sustainable market, economic growth and the UK’s net zero target.’

Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, said: ‘Uncertainty over fuel costs will inevitably make electric vehicles more attractive, but he acknowledged manufacturers and dealers face ‘the challenge of attracting consumer spending at a time when most are protecting their budgets’.

He told the Daily Mail and This is Money: ‘When it comes to electric vehicles, the incentive for buyers will not only come from an attractive price point, but will also come in the form of fair charging infrastructure for everyone – especially those without off-road parking.’

A spokesperson for the Department for Transport told us that SMMT’s figures ‘prove that motorists across the UK are driving electric vehicles in record numbers’ and that they credit Labour’s Electric Car Grant (which offers discounts of up to £3,750) for ride sales.

‘Our ECG makes electric vehicles cheaper and more accessible than ever.

‘More than 85,000 motorists have already saved up to £3,750 when buying a new EV, and we’re saving tenants £500 on the cost of installing a home charger, unlocking cheaper charging rates for residents – and with global price fluctuations at petrol pumps, switching has never made more sense.’

Latest figures show that one in seven new cars registered is a Chinese model. And BYD is leading the increase in demand

Chinese cars are gaining popularity

Chinese brands account for 15 per cent of the UK’s new car market, with just under 100,000 new sales volume recorded in the first three months of the year, according to analysis by Schmidt Automotive.

Ian Plummer, chief customer officer at Autotrader, says Chinese brands are helping to drive ‘affordability, availability and increased competition’ in the market.

‘The steady sales growth in the first quarter shows that strong offers are bringing buyers back to showrooms,’ he explained.

‘This is encouraging for the entire automotive ecosystem, as rising new car sales continue to unlock the supply that has constrained the used car market in recent years.’

MG remains the UK’s most popular Chinese manufacturer, as it has been for over a decade. Although his bullet is very weak now.

Approximately 15,720 new MGs were delivered in March; That’s only 558 units more than BYD, which has been rocketing up the sales charts since its launch in 2023.

Like MG, its vehicle lineup is largely electric and consists mainly of EVs and PHEVs.

BYD registered 15,162 cars in March. That’s more than Peugeot, Hyundai, Skoda, Land Rover, Volvo and EV rival Tesla

‘We are naturally pleased to achieve such impressive UK car sales in March and the overall quarter,’ said BYD UK country manager Bono Ge.

‘Building on the growth we have achieved since arriving in this country three years ago, our cars continue to spark real interest among both private and fleet buyers across the country, with strong value for money and attractive styling and technology.’

He added: ‘With prices currently fluctuating at the pumps, we are also seeing a lot of interest from British car buyers wanting to learn more about our innovative electric and plug-in hybrid technologies.’

Chery Group, which combines Jaecoo, Omoda and Chery, registered a total of 22,495 passenger vehicles last month. This statistic is even more impressive considering Omoda entered the UK market at the end of 2024, Jaecoo launched in January 2025, and Chery’s sales only started last summer.

Sales figures show that as a standalone brand, only VW shifted more units than Chery Group in the UK in March.

In fact, when the registrations of the nine largest Chinese brands (MG, BYD, Jaecoo, Omoda, Chery, Leapmotor, Geely, Changan and XPeng) are combined, these manufacturers represent more than one in seven new car deliveries (15%) in Britain; that is, a total of 57,414 vehicles.

Chery Group, which combines the Jaecoo, Omoda and Chery brands, registered a total of 22,495 passenger vehicles last month. Only VW as an independent brand sold more new cars

Jaecoo 7 SUV became the most delivered new car of March with 10,064 registrations. Approximately 9,000 of these were the top-end plug-in hybrid version

Last month’s best performer, the Jaecoo 7, surpassed the Ford Puma (9,193 sales), the best-selling model of the last three years in the UK, with 10,064 deliveries.

More than half (55 percent) of Jaecoo 7 deliveries last month were to private customers, the Chinese brand told us.

Prices for the petrol version start from £30,175, while the most sought-after is the plug-in hybrid version at £35,175.

It was stated that 7 SHS (Super Hybrid System) accounted for 85 percent of all registrations.

Jaecoo UK CEO Gary Lan said: ‘Securing the number one position in the UK – both in March – is a milestone for Jaecoo.

‘Jaecoo 7 has resonated strongly with UK customers thanks to its combination of advanced technology, eye-catching design and real-world usability, especially with our Super Hybrid System.

‘This result reflects not only the strength of the product, but also the loyalty of our growing UK retail network and the trust our customers have in our brand.

‘Although we are relatively new to the market, our global Chery Group production base and extensive experience in vehicle exports have enabled us to quickly adapt to the needs of the UK market and grow sustainably there [in the UK].’

BYD and Chery Group’s success can be attributed not only to their competitive pricing but also to their visibility in the UK.

Both have established extensive retail networks, with BYD opening 132 showrooms in the UK and Chery amassing 124 dealers. Both plan to open further in 2026.

They will also launch new brands in Britain this year.

Denza, a premium subsidiary of BYD, will soon hit showrooms with its impressive Z9GT EV that can be fully charged in around nine minutes, making Lepas the fourth brand under Chery’s banner.