The new car market rose 10.4% last month to 317,786 registrations, according to the Society of Motor Manufacturers and Traders.
This completed the 20th consecutive month of growth, although sales figures are still 30.6% down on pre-pandemic levels.
Petrol vehicles continued to dominate the market, accounting for 55.7% of all new registrations, while diesels made up 7.3% of all sales.
Meanwhile, 44,550 hybrids were sold in March, representing a rise of 19.6%, while plug-in hybrid sales surged by more than a third to 24,517, and pure electrics rose by 3.8%.
The light commercial market also enjoyed a strong sales month, with 52,916 new registrations equating to an 11.1% spike.
Mike Hawes, SMMT Chief Executive, 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, shows 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.”