UK car market declines in critical ‘new numberplate’ month

London – UK new car registrations fell by 14.3% to 243,479 units in March, a month that is normally “the industry’s busiest month” as buyers demand the latest numberplate.

Despite manufacturers reporting robust order books during the first quarter, ongoing supply chain shortages – especially of semiconductors – continued to squeeze supply, said the Society of Motor Manufacturers and Traders (SMMT) 5 April.

As a result, last month was “the weakest March since 1998,” the association added.

“Given around 20% of total annual registrations are usually recorded in March, the result is massively disappointing for the sector and underscores the long-term impact the pandemic is wreaking on the industry,” it warned.

“March is typically the biggest month of the year for the new car market, so this performance is deeply disappointing and lays bare the challenges ahead,” said Mike Hawes, SMMT chief executive.

Overall, first quarter registrations were down 1.9% compared to last year, despite the industry being limited to ‘click and collect’ during the same period in 2021.

Battery electric vehicles (BEVs), however, continued to enjoy “tremendous growth”, with 39,315 new zero emission cars leaving dealerships – an increase of 78.7% on last year.

This, SMMT said, is the highest volume of BEV registrations ever recorded in a single month.