NEW car registrations rose for the first time in six months during March with fleet and business sales leading the way.
One year on from the first lockdown in March 2020, the new car market recorded its first growth since August with 29,280 more units registered compared to the same month last year, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).
Jon Lawes, Managing Director of Hitachi Capital Vehicle Solutions, said he believed the industry can look forward with renewed optimism. “There are encouraging signs consumer confidence is returning, increasing by seven points in March according to a recent study. And our industry has undoubtedly adapted to deliver in a covid-safe environment and even experienced growth.
“We’ve seen this first-hand, with 2020 being a record year for HCVS. Our leasing fleet grew by more than 19% on the previous year against a backdrop of a declining vehicle leasing market. At the same time our customer feedback scores beat the previous 12 months, highlighting the importance of putting customer experience and safety first during these challenging times.
“I strongly believe that overall the industry is in a good position to meet the pent-up consumer demand in the months ahead by focusing on innovative customer service and delivery.
“Looking further ahead, the future of working patterns is seen by many as key to the fate of the UK vehicle market. People need to know what their day-to-day schedules – and travel requirements – are going to look like before they commit to a new car.”
Karen Johnson, Head of Retail and Wholesale at Barclays Corporate Banking, added: “With last year’s March figures encompassing the UK’s last few weeks of pre-COVID spending patterns, we expected to see new car sales down year-on-year across the board. However, fleet and business sales have bucked this trend. Whilst consumer sales fell by over 4% versus last year, businesses looking to invest in a post-lockdown future have pushed overall sales to an 11.5% rise versus March 2020.
Compared with the 2010-2019 March average of 450,189, registrations were down 36.9%, with 283,964 units registered. So far, 2021 has seen 58,032 fewer cars registered compared to January to March last year, equivalent to a loss of £1.8 billion in turnover during the first quarter.1
For the sector to return to its pre-pandemic levels, around 8,300 new cars will need to be registered every single trading day for the rest of the year. By comparison, the industry has averaged around 7,400 a day during the past decade and current levels are closer to 5,600 a day.
Click and collect provided a lifeline for the sector – made possible by manufacturers and their networks successfully investing in digital channels. Click and collect does not, however, offer the consumer the same experience and excitement as a showroom environment.
With dealerships reopening their doors next week, customers can look forward to choosing and configuring a new car, safely, in person from the wide choice available, as dealers attempt to recover some of the £22.2 billion lost in turnover since March 2020.
The shift to new technologies is continuing, however, with plug-in vehicle demand reaching its highest ever volume. Battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) took a combined market share of 13.9%, up from 7.3% last year as the number of models available to customers increased from 72 to 116. Registrations of BEVs increased by 88.2% to 22,003 units, while PHEVs rose by 152.2% to 17,330. Hybrid Electric Vehicles (HEVs) also rose 42.0% to reach 21,599 registrations.
John Wilmot, Chief Executive of leasing comparision website LeaseLoco, said: “Once again, the monthly growth in electric vehicle sales stands out, showing that the public does have the appetite to buy EVs.
Lucy Simpson, Head of EV Enablement at Centrica Business Solutions, said: “The continued rise in EV registrations is proof that increasing numbers are recognising the advantages of low-emission road transport over traditionally fuelled alternatives. The figures show that appetite to adopt is growing, which is promising, but lack of charging infrastructure is a well-documented barrier to uptake that needs urgent attention if the UK is to hit its climate goals and support sustainable economic growth.
“As the country builds back from coronavirus, financial incentives that encourage mainstream EV adoption and accelerate the rollout of charging infrastructure must remain a key priority for policymakers.
“Adequate availability of charging points in homes, workplaces and public places will be crucial to the success of the Government’s levelling-up agenda, and we must ensure charge point inaccessibility doesn’t stall the good progress being made to electrify the UK’s vehicles – a vital component of the Road to Zero strategy.”
