Sector’s sales best in years

The new-vehicle market in the UK has recorded its best monthly sales since March 2019, with 380,627 units registered last month.

The latest total is also the best March on record and was 6.6 per cent more than the 357,103 sales in the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT). 

March is typically the busiest month for the sector in the UK and in March 2019 there were 458,054 registrations. 

Growth was driven primarily by private demand, with retail registrations rising 10.1 per cent to 162,470 units. Fleet registrations increased 3.5 per cent to 208,853 units, while the smaller business sector growing 18.8 per cent to 9,304 units.

March was also the best month yet for electrified vehicle volumes, accounting for 196,059 sales. 

Plug-in hybrid (PHEV) registrations rose 46.9 per cent to take a 13 per cent market share, while hybrids climbed 7.3 per cent to 15.8 per cent. 

Battery EVs (BEVs) reached a new record after jumping 24.2 per cent year-on-year to 86,120 units. However, their market share of 22.6 per cent in March and 22.4 per cent year to date is below the government’s zero-emissions vehicle mandate target of 33 per cent for 2026.

Mike Hawes, pictured, SMMT chief executive, says: “The strongest new car market since 2019, with the highest ever volume of EV registrations, is a boost to the industry and the economy. 

“However, the headlines belie the costs incurred and the challenges involved. Much of March’s performance will be from orders placed before the start of the Iran conflict, which threatens to raise the cost of living, undermining consumer confidence. 

“Against this backdrop, and with the EV market falling further away from mandated levels despite record levels of incentives, an urgent review of the transition is required to secure a sustainable market, economic growth and the UK’s net-zero ambitions.”