05 April 2013

New car registrations in March rose by 5.9% to reach almost 395,000 units, according to official figures released by the SMMT. The rise was driven by increased demand from retail customers, up by 7.8%, but fleet demand was up too.

The success means that registrations in Q1 are up by 7.4% to 605,198 units. This is still some 12.1% below the 2007 pre-recession market total, but was the best since the 2010 when more than 50,000 cars were registered through the scrappage incentive.

“UK new car registrations out-performed expectations in March, the first month of the new 13-plate” said SMMT interim chief executive, Mike Baunton.

“Despite on-going economic concerns, consistent monthly growth in the market is an encouraging sign of returning consumer confidence as motorists are attracted to forecourts by new models and the latest technologies.”

Sources have told Auto Retail Network that sales slowed during the middle of the month but picked up again in the final 10 days as the snow melted and weather conditions improved. Indications are that the larger retail groups will have hit their targets but that some smaller dealerships may have struggled to get market share.

The Q1 outturn was 2.7% above SMMT’s forecast, which could lead to the market exceeding the SMMT’s 2.057 million unit full year outlook. However the trade association warned that trading conditions remain challenging, given the subdued wider economic setting.

Registrations of all sales types rose in March and across most segments with the Ford Fiesta the best-selling model in both March and Q1. Registrations of petrol-fuelled cars rose by 12.1% so far in 2013, outselling diesels. This has been spurred by growth in the small car and private sector markets.

A full analysis of the sales figures will appear in the April issue of Auto Retail Bulletin. If you are not already a subscriber, apply for your free trial now.

Tags: March 2013 sales, March sales, New car registrations, SMMT