Author: Robin Roberts
Private buyers returned to the new car market and helped to unexpectedly boost March registrations.
SMMT figures show volumes rose 1.8% in March to 372,835 new 12-plate registrations.
March is typically the largest month for registrations, averaging 18% of the full year’s volume. Quarter one volumes rose 0.9%, to 563,556 units while private registrations showed one of the best monthly increases in the past two years, up 7.4% in March.
March’s 372,835 units bettered SMMT’s forecast for the month by some 20,000 units or almost 6%.
March typically accounts for 18.0% of annual volumes, but the 2012 outturn would represent 19.4% of SMMT’s full year forecast of 1.92 million units set in January.
The growth in registrations in March, comes on top of a weak 2011 performance. Registrations in the month remain some 17% off the 2007, pre-recession, market total.
Registrations have risen in four of the past eight months, but the underlying market trend is more about stability than growth. The 12-month running total has been around 1.95 million units since June 2011.
The market shares for diesel and alternatively-fuelled vehicles continue to rise, reaching 50.4% and 1.5% respectively in quarter one, with volumes up 4.7% and 5.6% respectively on 2011 levels.
Supermini registrations rose in both March and Q1, to account for 39.1% and 37.7% respectively of the market. The Dual Purpose, Specialist Sports, Executive and Lower Medium segments showed the best growth in March.
The Ford Fiesta was the best-selling model in both March and over the first three months of 2012.
Registrations of UK-built cars rose by 12.3% in March, as their market share rose to 14.6%, from 13.3% a year ago.
Commenting on the latest car registration figures David Raistrick, UK Manufacturing Leader at Deloitte said, “The figures are welcome news to the industry as manufacturers in the UK and in wider European regions have had a tough start to the year as consumer confidence faltered due to concerns around economic growth. However, some of the premium brands have ridden the waves well and continue to hold up.”
He added, “Last month’s Budget reinforced the Government’s commitment to developing a greener business fleet through the tax system. The Chancellor has listened to lobbying, and has underlined commitment to the benefit in kind charge for company cars through to the tax year 20016/17 and removing the 3% diesel supplement from April 2016.
“The UK continues to have one of the greenest car fleets in the world, and will undoubtedly be an early adopter when new technology allows alternatively fuelled vehicles such as hydrogen cell or electric vehicles to break into the mainstream.”
Mr Raistrick sounded a little caution though adding, “The overall volumes of used cars traded across the UK have declined and we are continuing to see private buyers moving down the value chain, with less being spent on an average purchase than 12 months ago.
This is echoed in the sentiment across the UK’s 4,000 franchised retailers who remain cautious, with last month’s dealer attitudes survey from the NFDA indicating that dealers remain cautious about the year ahead.”
Sue Robinson, director of the NFDA, said, “The 12–plate figures are a clear indication that private and business buyers are continuing to capitalise on the evolving technological capabilities of the new models coming on to the market. With several new models recently launched and continued competitive pricing, March, as forecasted has proven to be a strong month.
“Whilst we have seen slow signs of recovery over the last few months, we will need to see a sustained increase in new and used car sales over the remainder of the year. In order to remain buoyant the industry would benefit from an element of support similar to the scrappage scheme introduced several years ago.”
Find out what it will cost to run a new car with our car tax calculator and our business car comparisons provide a useful and quick assessment.
