Car market shows

glimmer of hope

Vauxhall Corsa

THE UK new car market recorded its first growth since August 2020, with 29,280more units registered during March compared to the same month last year, according to figures published today by the Society of Motor Manufacturers and Traders.

However, the month represents the anniversary of the first lockdown in March 2020 when thepandemic brought Britain to a standstill and registrations fell by 44.4 per cent.

Compared with the 2010-2019 March averageof 450,189, registrations were down 36.9 per cent 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.

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 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.

While overall registrations were slightly up compared to last year, growth came almost entirely from fleets, which saw a 28.7 per cent increase in registrations.

Retail consumer demand remained depressed, falling by 4.1 per cent compared to March 2020 as showrooms remained closed for the duration of the month.

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 per cent, up from 7.3 per cent last year as the number of models available to customers increased from 72 to 116.

Registrations of BEVs increased by 88.2 per cent to 22,003 units, while PHEVs rose by 152.2 per cent to 17,330. Hybrid Electric Vehicles (HEVs) also rose 42.0 per cent to reach 21,599 registrations.

Mike Hawes, SMMT chief executive,said: "The past year has been the toughest in modern history and the automotive sector has, like many others, been hit hard. However, with showrooms opening, there is optimism that consumer confidence - and hence the market - will return.

"We know we will see record breaking growth next month given April 2020 was a washout, but a strong and sustainable market is possible if customers are attracted to the choice and competitive offer the industry is able to provide within the safest of showroom environments.

"New plug-in models are already helping drive a recovery but to convince more retail consumers to make the switch, they must be assured these new technologies will be convenient for their driving needs and that means, above all, that the charging infrastructure is there where they need it, and when they need it."

The top selling car in March was the Vauxhall Corsa which notched up 7,927 sales ahead of the Ford Fiesta at 7,406 and the Mercedes-Benz A-Class with 7,012 sold.

The Tesla Model 3 took fourth spot with 6,585 models ahead of the BMW 3 Series and the Volkswagen Golf.

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