UK car sales up 18.2pc in March

Some 287,825 new cars were registered last month, up 18.2 per cent on March 2022, the Society of Motor Manufacturers and Traders said.

The increase was attributed to an easing of global supply chain shortages.

Jaguar Land Rover, which has its engine manufacturing centre at the i54 north of Wolverhampton had mixed fortunes.

Land Rover saw a 63.8 per cent rise to 11,260 vehicles, but Jaguar sales dropped 15.6 per cent to 1,940.

MG, which is based at Longbridge but has cars made abroad, enjoyed a 30.5 per cent rise to 12,232.

Ford was the top-selling UK brand at 20,415 with the Tesla Model Y having the biggest single sales at 8,123.

Large fleets, which include vehicles owned by organisations such as government agencies and rental companies, drove the uptake of new cars with a 40.9 per cent rise.

Deliveries to private buyers were up just 1.4 per cent.

March is viewed as a bellwether of the automotive industry's performance as new number plates are introduced, traditionally leading to an increase in demand.

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."

March was the largest month on record for registrations of pure battery electric new cars, with 46,626 deliveries.

But Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the "positive" headline numbers "mask a worrying decline" in demand from private buyers.

He said: "Recent sales growth has been driven by the fleet sector, but early indicators on our marketplace suggest a dampening in appetite for new cars as the cost-of-living crisis bites the market.

"Visits to Auto Trader's site were up 17 per cent on last year in March and new car stock rose by almost a third (30 per cent).

"But the volume of consumers viewing new car adverts and inquiring about new cars are down more than 12 and 40 per cent respectively.

"Currently, almost all (93 per cent) of new car sales are bought on finance, so we suspect rising interest rates are to blame."

Mark Oakley, director of AA Cars, said: “Today’s buoyant new car market is unrecognisable compared to where it was a year ago, when sales slumped amid a perfect storm of shortages – of both cars for sale and fuel.

“Fuel prices have now settled, the queues of drivers waiting to fill up are a thing of the past and vehicle production lines are mostly back up to speed."

John Wilmot, chief executive of car leasing comparison website LeaseLoco, said: “With supply chain constraints easing, an eighth consecutive month of growth shows new car sales are moving in the right direction. However, it would be foolhardy to declare the car industry is out of the woods just yet, because current numbers being posted are still well below pre-Covid levels.

“The industry was severely hampered by plunging consumer confidence and poor model availability in 2022, so it’s not a great surprise that we are seeing high growth figures recorded every month this year compared to last."

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, added: “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.”