UK new car registrations in March delivered the best ‘new plate month’ performance since before the pandemic, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The 18.2% year-on-year increase saw 287,825 units delivered, the eighth consecutive month of growth for the new car market, as supply chain challenges slowly continue to ease.
As a result, the first quarter of 2023 is the strongest since 2019, with just under half a million new cars joining the road, the SMMT said.
Chief executive of the SMMT, 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.”
However, John Wilmot, CEO of car leasing comparison website LeaseLoco, suggested despite the growth 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".
He explained “a more accurate indicator of where the new car market is right now is comparing March registrations with 2019 levels, a year before Covid struck and showrooms closed, when sales were above 450,000".
"Registrations last month were 37% lower than March 2019. This shows sales haven't miraculously bounced back and there’s a large gap to close even to reach parity. We could be talking years before the new car market posts those kinds of numbers again," he pointed out.
The SMMT said petrol-powered vehicles remained the most popular fuel type, comprising 56.3% of new units, while battery electric vehicle (BEV) deliveries reached a record monthly high of 46,626, representing growth of 18.6%.
The biggest growth, however, was in hybrids (HEVs), with a 34.3% surge helping electrified vehicles account for more than one in three registrations for the month.
By segment, superminis posted the largest percentage growth – up 27.2%, to remain Britain’s most popular car type. Lower medium and dual purpose vehicles were the second and third most popular respectively, with all three vehicle types combined representing 86.5% of total registrations.