EV demand soars as prices at the pumps skyrocket: "The shift to electric is worth making"
EV demand has soared as prices at the pumps skyrocket with experts advising that "the shift to electric is worth making".
March was the best month on record for electrified vehicle (EV) volumes, accounting for 196,059 registrations, SMMT data shows.
This come as the cost of petrol continues to rise due to the Iran war. Petrol is up to 148.78p a litre on average, according to the latest data. This is the highest level since May 2024 and has risen over 12% since the start of the war a month ago.
Drivers have even reported seeing over £2 a litre at some pumps. Diesel is now 176.52p a litre on average in the UK – the highest level since December 2022.
Plug-in hybrid (PHEV) registrations rose 46.9% to take a 13.0% market share, while hybrid electric vehicles (HEVs) increased 7.3% to take 15.8% of the market. Battery electric vehicles (BEVs) reached a new record, up 24.2%, to 86,120 registrations in the month.
Mike Hawes, SMMT chief executive, said: “The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy.”
Prices of the UK’s most in-demand used electric and hybrid vehicles have
fallen for the fifth consecutive quarter, according to the latest AA Cars Used Car Index.
The average cost of the 20 most searched-for EVs and hybrids on AA Cars fell by 1.7% to £16,553 in Q1 2026, down from £16,843 in Q4 2025. Prices were also 7.1% lower than a year earlier.
James Hosking, Managing Director of AA Cars, said: “Used EV and hybrid prices continued to soften in Q1, extending the gradual reset we’ve seen over the past year. That is helping make low-emission cars more attainable for a wider group of buyers, particularly motorists who may have previously viewed them as out of reach.
“What stands out is that demand remains active even as prices adjust. The Toyota Yaris hybrid continues to top our search rankings, and we’re also seeing strong interest in more affordable EVs such as the Nissan Leaf and Renault Zoe. For many drivers, the used market is becoming the most realistic route into electric and hybrid motoring."
Steven Greenall, Mortgage and Protection Advisor at Dunmow-based Protect & Lend, said he moved from diesel to EV and has not looked back since.
He added: "I transitioned from a diesel to an EV back in October 2025 and couldn't be happier with it. The range anxiety my wife initially experienced has gone and 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 unless you are a travelling sales person?”
Katrina Young, Digital Transformation Strategist at KYC Digital, said it is worth shifting to an EV.
She added: "The economics are clear: lower running costs, reduced exposure to fuel now past 148p a litre, and used EV prices falling for the fifth consecutive quarter. But the switch is not straightforward. I made the move myself. The operational reality is what most commentary skips. Charging infrastructure is fragmented. Insurance adjusts. Repairs are less predictable.
"Long journeys require planning that petrol drivers have never needed to think about – building in charging stops, checking network reliability, adding time that compounds across a route. Demand is outpacing system readiness.
“Record registrations are encouraging, but they don’t mean the infrastructure is keeping pace. Regional provision is uneven. The shift is worth making. But scaling adoption requires more than falling prices. It requires consistent infrastructure, guidance, and planning.”
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said the per-mile cost of EVs are roughly 6p, in comparison with petrol’s 17p.
He added: "The UK’s record-breaking March for electrified vehicles is a natural response to the seismic shift in energy costs as petrol nears 155p and diesel exceeds 186p due to the Iran conflict. With petrol up 12% in a month, the ‘no-brainer’ argument for EVs is strengthening, especially as used prices fell 7.1% year-on-year to an average of £16,553.
"For those with home charging, the per-mile cost of roughly 6p makes petrol’s 17p look unsustainable. Early adopters likely feel vindicated; they are now insulated from pump volatility that has seen some stations charge over £2. However, it’s far from a universal ‘no-brainer’ yet.
"Public charging costs remain high, grid coverage is sketchy in area like Cornwall and the grid faces its own energy price pressures. The financial ‘carrot’ of lower running costs is growing, but for many, the switch remains a balance of fuel savings against charging convenience and upfront costs."
