UK new car market records strongest March sales since 2019

UK new car market sales: The UK's new car market experienced its strongest March performance since 2019, driven by sustained demand from fleet buyers, according to industry data released by the Society of Motor Manufacturers and Traders (SMMT).

With 317,786 new car sales in March, marking a 10.4 per cent increase compared to the previous year, the month retained its status as the busiest period, typically associated with the introduction of new number plates. However, sales figures still lag behind pre-pandemic levels by 30.6 per cent.

While fleet sales surged by approximately 30 per cent, private demand witnessed a 7.7 per cent decline, attributed to pressures from rising living costs and elevated interest rates dampening consumer spending.

SMMT Chief Executive Mike Hawes highlighted the growth momentum driven by fleet investments post two years of supply constraints. Nevertheless, challenges persist with a sluggish private market and a shrinking share of electric vehicle (EV) sales.

Despite achieving record levels of battery electric vehicle (BEV) registrations in March, their market share experienced a slight decrease compared to the same period last year. SMMT underlined the need for additional incentives, particularly targeting individual consumers, to accelerate the transition to zero-emission vehicles.

Hawes advocated for government support, proposing measures such as a temporary reduction in value-added tax (VAT) for BEVs, to facilitate a swifter and more equitable transition in alignment with industry growth trends.

(With Reuters inputs)