Car registrations fall 14.3% in March but EV sales continue to soar

New car registrations fell by 14.3 per cent to 243,479 units during March, but electric vehicles continued to see increasing demand, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).

Though it represented the weakest March since 1998 – prior to the UK’s switch to two annual number plate changes – it was the best-ever month for battery electric vehicles, with the segment seeing 78.7 per cent growth to 39,315 units. Electrified vehicles – be that hybrid, plug-in hybrid or full electric – accounted for one in three registrations.

Despite manufacturers reporting ‘robust order books’ during the first quarter of 2022, according to the SMMT, ongoing supply chain issues including the lack of semiconductors hamstrung the industry in what is usually the industry’s busiest month as buyers seek to get a car with the latest number plate.

Mike Hawes, SMMT chief executive, said: “March is typically the biggest month of the year for the new car market, so this performance is deeply disappointing and lays bare the challenges ahead. While demand remains robust, this decline illustrates the severity of the global semiconductor shortage, as manufacturers strive to deliver the latest, lowest emission vehicles to eagerly awaiting customers.”

Though private registrations grew by 8.2 per cent in the month, March 2021 had seen showrooms closed due to social distancing regulations. Large fleet registrations, in contrast, declined by 34.4 per cent but business registrations swelled by 20 per cent.

The growth in sales experienced by battery-electric vehicles saw the segment take a 16.1 per cent market share in the process. The SMMT states that this is the highest volume of BEV registrations ever recorded in a single month and means that more were registered in March 2022 than in the whole of 2019. The top two best-selling cars during the month, in fact, were from Tesla.

Hawes added: “Placing orders now will be beneficial for those looking to take advantage of incentives and lower running costs for electric vehicles, especially as the Ukraine crisis could affect supply still further. With increasing household and business costs, the government must do all it can to support consumers so that the growth of electric vehicles can be sustained and the UK’s ambitious net zero timetable delivered.”