Electric Vehicles (EVs) are having their best month in history. According to newly released data, March 2026 was the strongest month ever recorded for EV registrations in the UK. In fact, Battery Electric Vehicles (BEVs) grew by an impressive 24.2% year-on-year, reaching 86,120 registrations in just one month, the highest volume ever seen.
For the automotive industry, this isn’t just another data point. It’s a powerful signal that EVs are no longer niche – they’re mainstream, desirable, and becoming the preferred choice.
Let’s take a look at the latest EV registration trends and explore why 2026 may be the best time to bring EVs into employee benefits offerings.
Why 2026 is the perfect time to embrace EVs
March is normally a big month for UK car sales due to the new registration plate change. But this year has surpassed expectation. March 2026 wasn’t just strong – it was the best month since 2019, across all fuel types. A total of 380,627 vehicles were registered, up 6.6% from last year.
The standout story is electric:
- BEVs: +24.2% year-on-year, reaching 86,120 registrations
- Plug-in hybrids (PHEVs): +46.9%
- Hybrids (HEVs): +7.3%
- Electrified vehicles (combined): 196,059 registrations, the highest ever
All this puts EVs at 22.6% of the market share in March, a significant milestone even if still short of ZEV Mandate targets.
Even external conditions, like rising fuel prices linked to geopolitical tensions, are pushing more consumers toward electric options. According to recent reports, petrol and diesel costs have surged dramatically, making EVs look even more financially attractive.
This growth highlights a rising consumer appetite – and an opportunity to accelerates familiarity and confidence with EVs through hands-on experience via employee car benefits.
Why this matters for automotive retailers
Retailers play a vital role in helping customers switch to electric. But the biggest challenge isn’t always the customer – it’s ensuring staff understand, appreciate, and truly believe in EVs. And the best way to achieve that? Get them driving EVs themselves.
Offering EVs as part of employee car benefit schemes can:
1. Build authentic product advocacy
Employees who drive EVs can talk confidently about charging, running costs, range, comfort, and tech features – because they’ve lived it.
2. Boost staff retention and recruitment
EVs feel like a premium benefit. With nearly all manufacturers expanding their electric line-ups, employees enjoy more choice and access to the latest models.
3. Strengthen relationships with OEM partners
Demonstrating internal EV adoption reinforces commitment to brands – especially as many are under pressure to meet ZEV Mandate targets.
EVs are becoming more accessible and that helps the employee benefit offering
The growth in EV registrations isn’t happening in isolation. Industry changes are making EVs more affordable and accessible, strengthening the case for employee benefit schemes.
1. More models at better price points
A wave of new EV models is arriving in 2026. We’re expecting many new releases, from updated Nissan models to new Chinese entrants, all of which are increasing competition and helping drive down prices.
For employees, that means more choices at better monthly costs.
2. Improved used EV market
Used EV sales are booming, creating lower-cost entry points for salary sacrifice and benefit schemes. This gives you flexibility when structuring packages.
3. Tax incentives still make EVs incredibly attractive
Benefit-in-Kind (BiK) rates for EVs remain extremely low compared with petrol or diesel, even though it’s just risen to 4% in 2026/27.
4. Lower running costs
With fuel prices continuing to rise (petrol up around 18% and diesel up by a third in recent months), EVs can significantly reduce the cost of commuting.
The ZEV Mandate: a pressure point retailers can turn into an advantage
The 2026 ZEV Mandate requires 33% of new car sales to be zero-emission. Right now, BEVs sit at around 22.6% of the market for the month of March.
This shortfall means manufacturers need to push more EVs into the market and retailers are at the heart of that push.
Offering EVs as staff car benefits:
- Helps shift additional EV volume through internal channels
- Demonstrates commitment to OEM objectives
- Enhances staff product knowledge, making retail teams more effective at selling EVs
With industry voices calling for a review of the mandate due to rising battery and energy costs, the current landscape is dynamic – but one constant remains: EV uptake is essential.
Why 2026 is the ideal year to launch or expand an EV employee car benefit scheme
Let’s bring it all together. As an automotive retailer, here’s why 2026 is the perfect time to make EVs the centrepiece of an employee benefit strategy:
1. Record-breaking EV demand shows strong national momentum
Customers will increasingly expect EV expertise from people who have real, lived experience. Providing EVs to employees gives a team this edge.
2. Manufacturers are expanding EV supply
OEMs struggling to hit ZEV targets are incentivising EV sales and often offering better terms for employee schemes.
3. Government tax changes encourage early adoption
With BiK rising slightly next year, 2026 is a golden window to get staff into EVs at the most favourable rates.
4. Rising fuel prices make EVs look even more cost-effective
Employees will personally feel the benefit of lower daily running costs – making the benefit both meaningful and financially advantageous.
5. Growing used EV market gives more affordable options
More used EVs mean employers can offer attractive benefit schemes at lower monthly costs.
Make 2026 the year your team goes electric
With record-breaking EV registrations, rising fuel prices, expanding model choices, and attractive tax incentives, the conditions couldn’t be better for automotive retailers to embrace EVs not just for customers, but for employees too.
Offering EVs as an employee car benefit isn’t just a benefit. It’s a strategic move that boosts staff satisfaction, strengthens your EV expertise, supports manufacturer relationships, and positions businesses as forward-thinking leaders in the UK’s transition to electric.
To discuss how to add EVs to an existing CBS car scheme, get in touch with your account manager today.
Data sources: Society of Motor Manufacturers and Traders (SMMT) | The Independent | Electric Car Scheme