The car market showed signs of springing back to life as new registrations grew by 18% in March, while car dealership Lookers raised its full-year profit guidance on the back of strong Q1 figures.
According to the Society of Motor Manufacturers and Traders (SMMT), 287,825 vehicles were delivered in March, a month which typically sets the tone for the year ahead.
However, the SMMT added that the market was still “significantly below” pre-pandemic levels.
Electric cars drove much of the growth, as registrations hit a record high. The SMMT predicted further growth in this area, but only if charging infrastructure keeps pace.
“Models are coming to market in greater numbers, but consumers will only make the switch if they have the confidence they can charge whenever and wherever they need,” it said. “Success of the mandate, therefore, will be dependent not just on product availability but on infrastructure providers investing in the public charging network across the UK.”
Lookers, which has 150 dealerships in the UK and Ireland, has reaped some of the benefits of the market rebound. It said its profit for the year is now set to beat previous expectations. CEO Mark Raban noted that the dealership outperformed the market on EV sales, while used cars and after-sales services also performed well.
“Customers are interested in electric vehicles,” he said. “When customers get their hands on them they really really do love them.”
The group’s profit dipped slightly in 2022 as supply chain issues limited the availability of cars, though Raban said those issues eased as the year went on.
“The year all started with a shortage of chips and that spread to logistics operators,” he said. “So that was a big headwind for us. There’s been a lot of economic uncertainty as well with double-digit inflation.”
With £66 million in net cash, Raban said Lookers may turn to M&A in order to expand its electric car operations further.
