New Car Market Records Best March Since Pre-Pandemic, NFDA Calls for Price Incentives as Private Demand Lags Behind Fleet
“March signals a twentieth month of consecutive growth for the automotive sector, a remarkable milestone for the industry” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK commenting on the latest SMMT new car registration figures.
In March, a total of 317,786 new cars were registered, an increase of 10.4% from the same period last year. Sales to private buyers decreased by -7.7%; fleet registrations were up by 29.6%.
Battery electric vehicles (BEVs) experienced an increase, up 3.8% to 48,388 units. Plug-in hybrid (PHEVs) registrations increased by 7.7% to 24,517 units, and hybrids (HEVs) followed with growth of 19.6% to 44,550 units. There are 84,314 registered BEVs on the road in 2024 compared to the 76,233 units at the same point last year, a 10.6% increase.
With sales of electric growing, diesel fell from 23,968 units to 23,312 units (-2.7%), but petrol has risen from 162,046 units to 177,019 units (9.2%).
Sue Robinson concluded, “it is encouraging that the first quarter of 2024 has demonstrated continuous growth in new car registrations and electric vehicle sales. With March being a plate change month, this month’s growth appears to have been given a boost with the introduction of the ’24 plate.
“Despite the robust growth being demonstrated by the sector, it was disappointing that the Government offered little support to the industry in the recent Spring Budget which could have aided in accelerating this momentum further. Notably, there was no mention of price incentives for EVs, particularly as manufacturers seek to meet the targets outlined by the ZEV mandate.
“Private demand continues to be superseded by fleet, as has been the case in recent months, in which incentives could act to encourage private buyers.
“NFDA will continue to press the Government on current issues affecting the industry to ensure the best outcomes for dealers and consumers.”
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