9:21 am, March 6, 2023
The number of new cars hitting Britain’s roads jumped by more than 26 per cent in February, new figures reveal.
Latest data from the Society of Motor Manufacturers and Traders (SMMT) show 74,441 cars were registered last month – a 26.2 per cent rise on February 2022’s numbers.
It marked the seventh consecutive month of new car sales growth.
The SMMT said that despite February traditionally being a slow month ahead of the March plate-change, it was buoyed by supply chain issues ‘easing’.
February 2023 was down by just 6.5 per cent on the pre-pandemic February 2020.
Private, fleet and business sectors all saw jumps in registrations – up 5.8 per cent, 46.2 per cent, and 0.7 per cent respectively – while only executive and luxury saloon car segments saw falls (15.4 per cent and 6.3 per cent respectively).
Hybrid electric vehicles (HEVs) jumped the most in February, recording a 40 per cent increase.
Sales of petrol cars were up 35.8 per cent with a 56.9 per cent market share, while diesel registrations fell by seven per cent.
PHEVs rose by one per cent while pure-electrics soared by 18.2 per cent.
The SMMT reiterated its call for ‘binding targets’ for charging point roll-outs, due to an estimated 488,000 plug-in cars expected to join the UK’s roads this year.
The organisation also said that the Spring Budget is ‘an important opportunity’ to introduce a long-term plan for charging point investment, aligning VAT on public charging with domestic energy use, and reviewing the Vehicle Excise Duty premium that will unfairly penalise EV buyers in the future.
SMMT chief executive Mike Hawes said: ‘After seven months of growth, it is no surprise that the UK automotive sector is facing the future with growing confidence.
‘It is vital, however, that government takes every opportunity to back the market, which plays a significant role in Britain’s economy and net zero ambition.
‘As we move into “new plate month” in March, with more of the latest high-tech cars available, the upcoming Budget must deliver measures that drive this transition, increasing affordability and ease of charging for all.’
The Vauxhall Corsa returned to the top of the charts with 2,818 units registered last month.
It was followed by the Vauxhall Mokka (1,805) and Ford’s Puma (1,590).
Year-to-date figures show the Corsa leading the way with 5,243 units, followed by the Volkswagen T-Roc (4,616) and the Nissan Qashqai (4,318).
What the industry says
The latest new car sales figures are an encouraging boost for the UK automotive industry, but the ongoing cost of living crisis and high energy prices must be carefully managed for electric vehicle uptake to continue to accelerate as it needs to do in order to meet targets.
Jim Holder, editorial director, What Car?
Another month of solid year-on-year growth is a further indicator of growing consumer confidence, and the gradual improvement in supply. Heavy constraints remain, but the taps are slowly reopening, with levels of new car stock on our marketplace up over 30 per cent on this time last year.
Ian Plummer, commercial director, Auto Trader
New car sales headed into March’s plate change month in a relatively healthy state, thanks to a strong order bank built up over previous months of short supply.
Battery electric vehicles represented 16 per cent of the new car market last year, but aside from uncertainty linked to the cost of living crisis – whether electric vehicle transition can continue to maintain momentum also depends on the pace of rollout of charging points and opening up the market to more consumers via the availability of lower cost new EVs.
Chris Knight, UK automotive partner, KPMG
With the first examples of cars sporting the brand new March registration plates now arriving in forecourts, dealers will be hoping to tempt more would-be buyers in the coming weeks.
The big question is how the market will fare once the short-term boost offered by March’s new plates fades. Inflation is coming down, but only very slowly, and the rapidly rising cost of living is slicing into people’s disposable incomes – and thus their willingness to commit to big ticket purchases like a brand new car.
Mark Oakley, director of AA Cars
The sun is continuing to shine on new car sales, with February registrations growing for the seventh month in a row. This is no mean feat against a backdrop of economic uncertainty but is partly explained by the backlog of demand the industry is now able to fulfil. While demand for used EVs may be slower than last year, sales are still on the rise despite the concern over energy prices, proving motorists are still pursuing greener pastures.
Alex Buttle, co-founder of used car marketplace Motorway.co.uk
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