Some 15.2% of new cars registered in March were pure electrics, down from 16.2% during the same month last year, the Society of Motor Manufacturers and Traders (SMMT) said.

The industry body urged the Government to halve VAT on the purchase of new electric vehicles (EVs), amend plans to introduce vehicle excise duty for EVs, and reduce VAT on public EV charging to bring it into line with home charging.

Under the Zero Emission Vehicle (ZEV) mandate, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, which in most cases means they are pure electrics.

The threshold will rise annually until it reaches 100% by 2035.

Manufacturers who fail to comply or make use of flexibilities – such as carrying over allowances from previous years or purchasing credits from rival companies – will be required to pay the Government £15,000 per polluting vehicle sold above the limits.

Across all powertrains, some 317,786 new cars were registered last month.

That is an increase of 10.4% compared with March 2023.

Growth was driven by purchases for large fleets (up 29.6%), while demand from private buyers fell by 7.7%.

SMMT chief executive Mike Hawes said: “Market growth continues, fuelled by fleets investing after two tough years of constrained supply.

“A sluggish private market and shrinking EV market share, however, show the challenge ahead.

“Manufacturers are providing compelling offers, but they can’t single-handedly fund the transition indefinitely.

“Government support for private consumers – not just business and fleets – would send a positive message and deliver a faster, fairer transition on time and on target.”