The UK’s automotive industry suffered its worst March for new car sales since 1998, according to new figures (Peter Byrne/PA)
(Picture: PA Archive)The UK had the weakest March for car registrations since 1998 amid supply chain constraints and soaring costs of living.
Fewer than a quarter of a million cars were registered in March, a drop of over 14% on the previous year, according to figures released by the Society of Motor Manufacturers and Traders.
A global semiconductor shortage caused a bottleneck to completed car deliveries, leaving showrooms short of supply.
SMMT chief executive Mike Hawes said: “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.
“With increasing household and business costs, government must do all it can to support consumers.”
There were signs that the cost of living crisis was already impacting the car market. Registrations for luxury SUV maker Land Rover more than halved in March to just shy of 7,000, while registrations for lower-cost carmakers Kia and Hyundai jumped 59% and 21% respectively for a combined 29,000.
Karen Johnson at Barclays Corporate Banking said: “Lockdown is over, and many dealers expected the number plate change to bring in some of the new registrations that had eluded the industry during the pandemic. However, this has not materialised.”
Despite the drop in registrations, March was a bumper year for the battery electric vehicle market, with a record 39,000 registrations, up almost 80% on the previous year.
Sales of hybrid vehicles surged to 28,000, taking the market share of electrified vehicles to over one third.
The UK government has committed to providing grants of up to £1,500 for those who purchase electric cars and up to £5,000 for electric vans till March 2023.
Car manufacturing employs over 150,000 people in the UK and 800,000 in the wider automotive sector, according to SMMT estimates.
