New automobile registrations rise 10.4% in greatest March since 2019 and twentieth consecutive month of progress
The UK new automobile market clocked up its twentieth consecutive month of progress in March, with a ten.4% rise in registrations. In what is often the busiest month of the yr because of the new numberplate, 317,786 new automobiles reached the highway with a 24 plate – the perfect March efficiency since 2019, though nonetheless -30.6% under pre-pandemic ranges.1
Progress was once more pushed by fleet funding, up 29.6% because the sector continues to get well following the constrained provide of earlier years. Registrations by personal consumers fell by -7.7%, with a difficult financial backdrop of low progress, weak shopper confidence and excessive rates of interest. The small enterprise registration phase, in the meantime, declined -8.0%.
Petrol automobiles retained the lion’s share of the market, at 55.7%, with registrations up 9.2% yr on yr, as diesel volumes fell -2.7% to account for simply 7.3% of demand. Uptake of hybrid electrical automobiles (HEVs) reached document ranges, rising by 19.6% to 44,550 items and 14.0% of the market, whereas the largest proportion progress was recorded by plug-in hybrids, up by greater than a 3rd to 24,517 items, or 7.7% of all new registrations. Conversely, whereas battery electrical car (BEV) registration volumes had been at their highest ever recorded ranges, market share fell by one proportion level from the identical month final yr, down to fifteen.2%. Registrations rose 3.8%, with solely fleets displaying any quantity progress.
The autumn in BEV market share inside a rising market underscores the necessity for presidency to help shoppers to hurry up fleet renewal. Giant fleets proceed to drive BEV uptake, thanks to forcing tax incentives however whereas registration volumes elevated in March, market share declined. A tricky financial backdrop makes it ever tougher for shoppers to put money into these new applied sciences.
Producers themselves are providing beneficiant incentives, serving to extra drivers change to zero emission automobiles and ship authorities and business carbon targets, however this can’t be sustained indefinitely.2 A full market transition wants incentives not only for fleet and enterprise consumers however personal retail consumers as properly, one thing that may deliver the UK into line with different main markets. Briefly halving VAT on BEVs, revising the edge for the costly automobile complement on Automobile Excise Obligation subsequent April, and abolishing the ‘pavement penalty’ on public EV charging by equalising VAT charges to five% in step with dwelling charging, would make a big distinction to shoppers, serving to extra of them transfer to zero emission automobiles sooner.
Mike Hawes, SMMT Chief Govt, stated,
Market progress continues, fuelled by fleets investing after two robust years of constrained provide. A sluggish personal market and shrinking EV market share, nonetheless, present the problem forward. Producers are offering compelling provides, however they will’t single-handedly fund the transition indefinitely. Authorities help for personal shoppers – not simply enterprise and fleets – would ship a optimistic message and ship a quicker, fairer transition on time and on course.
1 March 2019: 458,054 registrations
2 What Automotive analysis exhibits EV reductions have elevated by 204% since January 2023
SOURCE: SMMT
