9:37 am, April 5, 2023
New car registrations in March delivered the best new plate month performance since before the pandemic, according to figures released by the SMMT this morning.
They bounced back by 18.2 per cent on 2022’s figure of 243,479 to see 287,825 units delivered – the eighth consecutive month of growth for the new car market, as supply chain challenges slowly continue to ease.
March 2019 saw 458,054 new cars sold, while March 2020 saw only 254,684 units shifted as the coronavirus crisis started to take a grip, and March 2021 saw the figure rise to 283,964.
As a result of the latest figures, said the trade body, the first quarter of 2023 was the strongest since 2019, with just under half a million new cars joining the road.
Year to date saw 494,260 deliveries – up 18.4 per cent on the figure of 417,560 during the same period last year.
That represents an extra £2.7bn of deliveries, which the SMMT said underlined the contribution the sector can make to UK economic growth, despite the market still being significantly below pre-pandemic levels – down 29.5 per cent on 2019’s first quarter of 701,036 units.
Registrations rose across all sales types, with deliveries to private buyers up by 1.4 per cent, and those to businesses with fleets of fewer than 25 vehicles up 26 per cent.
The best-selling vehicle was the Tesla Model Y, with 8,123 units sold. Second favourite was the Nissan Juke at 7,532 and third was the Nissan Qashqai at 6,755.
Large fleets were the main drivers of March’s growth, with registrations rising by 40,651 units – a 40.9 per cent increase to take an overall 48.6 per cent market share.
By segment, superminis posted the largest percentage growth – up 27.2 per cent, to remain Britain’s most popular car type.
Lower-medium and dual-purpose vehicles were the second- and third-most popular respectively, with all three vehicle types combined representing 86.5 per cent of total registrations.
Petrol-powered vehicles remained the most popular fuel type, comprising 56.3 per cent of new units, while battery-electric vehicle (BEV) deliveries reached a record monthly high of 46,626, representing growth of 18.6 per cent.
Overall, the BEV market share remained almost the same as last year at 16.2 per cent.
With plug-in hybrid (PHEV) registrations growing by 11.8 per cent, plug-in registrations comprised 22.4 per cent of the market – a slight drop on 2022.
The biggest growth, however, was in hybrids (HEVs), with a 34.3 per cent surge helping electrified vehicles account for more than one in three registrations for the month.
SMMT chief executive Mike Hawes said: ‘March’s new plate month usually sets the tone for the year, so this performance will give the industry and consumers greater confidence.
‘With eight consecutive months of growth, the automotive industry is recovering, bucking wider trends and supporting economic growth.
‘The best month ever for zero-emission vehicles is reflective of increased consumer choice and improved availability, but if EV market ambitions – and regulation – are to be met, infrastructure investment must catch up.’
What the industry says
Catalysts for continued growth are there
Spring has sprung for the new car industry with double-digit percentage growth for car registrations in March.
While volume is usually higher in March due to the plate change, this is now the eighth month in a row of sale increases.
With prices for both new and used EVs falling recently, the catalysts for continued sales growth are there for even more motorists to make the leap to electric.
Alex Buttle, co-founder, Motorway
Gamble seems to be paying off
As the industry begins to restore production to pre-pandemic levels, the 18.4 per cent rise in the number of new cars registered year to date shows the ongoing cost-of-living crisis and its rippling effect has not disastrously damaged consumer confidence.
Although manufacturers appear to be prioritising production of higher specification and value vehicles, this gamble appears to be paying off.
Lisa Watson, director of sales, Close Brothers Motor Finance
How will things pan out after boost fades?
The big question now is how the market will fare once the March boost fades. Inflation is stubbornly high – it even increased to 10.4 per cent in February – and the rapidly rising cost of living is still eating into people’s disposable incomes.
Meanwhile, the improving supply of new cars has revived the fortunes of the used car market. With more nearly new cars coming on to the used market, AA Cars data shows we are not seeing the big jumps in the average price of Britain’s most popular used cars that we saw last year.
Mark Oakley, director, AA Cars
Car makers must launch smaller, cheaper EVs
It’s reassuring to see the car market is growing steadily, yet when we drill down we can see that large fleets and business vehicles – which are both heavily incentivised – are responsible for more than half of the cars registered in March.
This could also explain why the Tesla Model Y was the best selling car last month. However, private buyers are still reluctant to switch, which is something the industry needs to take seriously.
It’s now up to car makers to launch smaller, less expensive models we desperately need to help drive uptake. Supporting infrastructure is key for this to happen.
Ginny Buckley, founder, Electrifying.com
Demand for EVs is continuing to grow
Our data shows that demand for EVs continues to grow, despite the cost-of-living crisis and high energy prices.
So far this year, we have seen the interest in EV parts and accessories grow by over a third – and with increasing numbers of EVs now reaching their second, and even third owners, we don’t anticipate interest slowing down anytime soon.
Tony Tong, head of automotive, eBay UK
