By Sammie Jones-
New car sales have grown for the first time in half a year, according to figures published by the auto sector this morning.
Almost 284,000 motors were registered in March, which was an 11.5 per cent increase on the same month last year.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders said there is ‘optimism that consumer confidence – and hence the market – will return’ as retailers get ready to welcome back buyers on 12 April.
It’s the first month of year-on-year sales increases since August 2020 and comes as car dealerships prepare to reopen their showroom doors to customers next week for the first time in 2021.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders said there is ‘optimism that consumer confidence – and hence the market – will return’ as retailers get ready to welcome back buyers on 12 April.
The total number of new cars bought last month rang in at 283,964.
This is almost 30,000 more than a year ago, when lockdown measures were first introduction.
Dealers were forced to close to the public from the end of trading on 23 March 2020 as the nation was plunged into the first Covid-19 restrictions.
The month of March is the biggest auto sales month of the year, boosted by the first of two new registration numbers launching – and dealers offering improved deals to tempt customers into the latest models.
The automotive sector had been hopeful that the Prime Minister’s phased easing of lockdown might have allowed them to reopen ahead of the busiest month for trading, but showrooms were kept in a state of lockdown for the entirety of the month – as it has done for all of 2021 so far
While overall registrations were up compared to last year, the SMMT pointed out that growth came almost entirely from fleets, which saw a 28.7% increase in registrations.
Dealers were able to sell over 280,000 cars using ‘click and collect’ and delivery services only – a remarkable achievement in the face of the pandemic +11
Dealers were able to sell over 280,000 cars using ‘click and collect’ and delivery services only – a remarkable achievement in the face of the pandemic.
Significant Demand
Sue Robinson, Chief Executive of the National Franchised Dealers Association, in reaction to the March sales statistics said: ‘There is still significant pent-up demand and dealers are ready to deliver when lockdown eases on 12 April.
‘Our members have ensured that their showrooms are Covid-secure by operating on an appointment basis, investment in PPE and instituting social distancing measures.
‘Today’s figures show that demand for the new ‘21’ plates is high. This demand is expected to further increase as industry data suggests that many car buyers are waiting for dealerships to fully reopen to complete their purchases.
‘As dealers will be able to safely welcome customers back to the showrooms in less than a week, April is expected to be a bumper month.’
Today’s figures are expected to boost morale in the industry ahead of showrooms in England reopening from Monday 12 April, alongside other nonessential retail outlets.
March sales showed a continued shift to new technologies is continuing, with plug-in vehicle demand reaching its highest ever volume.
‘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,’ Hawes added.
The Vauxhall Corsa retained its spot at the top of the sales charts, out-performing its biggest rival the Ford Fiesta for a second month in 2021 with almost 8,000 sold in March.
Among last month’s other best-sellers was the all-electric Tesla Model 3, which was fourth most-bought model.
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.
Commenting on today’s figures, Karen Johnson, head of retail and wholesale at Barclays Corporate Banking, said: ‘With last year’s March figures encompassing the UK’s last few weeks of pre-Covid spending patterns, we expected to see new car sales down year-on-year across the board. ‘
She added: ‘Looking further ahead, the future of working patterns is seen by many as key to the fate of the UK vehicle market.
‘People need to know what their day-to-day schedules – and travel requirements – are going to look like before they commit to a new car. Once this certainty comes, we can expect to see pent up demand from everyday consumers pushing sales in an even more positive direction.’