UK car registrations hit ‘21st century high’ in March

March 2015 was the best month for car registrations in Britain since twice-yearly number plate changes were introduced in 1999, reports the Society of Motor Manufacturers and Traders. A total of 492,774 cars were registered last month, 6.0 per cent more than a year earlier. The SMMT says “new products and attractive finance packages, underpinned by low interest rates” helped deliver this record result. Growth was led by the fleet sector, which experienced year-on-year growth of 11.6 per cent. A total of 734,588 new cars were registered in the UK during the first three months of 2015, 6.8 per cent more than in the first quarter of last year.

“The best month this century for new car registrations is a welcome boost for the UK’s thriving automotive sector,” said SMMT chief executive Mike Hawes. “The challenge for a new government and industry will be to maintain this momentum and to strengthen Britain’s manufacturing capabilities through continued investment, innovation and policies which maintain our global competitiveness. Whatever the general election result, the new government must keep up the commitment to the sector which is delivering at home and abroad.”

Sue Robinson, director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers across the UK, described the market’s 37 consecutive months of growth as “extremely positive” and attributed the trend to rising consumer confidence as the economy recovers. “Fewer concerns about unemployment and the improvements of household finance due to record low inflation and pay rises all help to encourage consumers to buy new cars,” she commented.

The March results were assisted by the new plate change, which encourages consumers to replace their existing vehicle. In addition, strong manufacturer deals and low cost finance offers are encouraging consumers to buy. According to the NFDA, finance offers such as PCP and service plans are helping to fix and in some cases cut the cost of motoring for drivers. “The fleet market growth in 2015 is pushed by an improved business confidence. We anticipate the market to continue to grow, and have strong expectations ahead of next month’s plate change,” shared Robinson.

Stay in the EU and increase investment

It’s now less than a month to the General Election, and the SMMT says its hopes are for a government that is committed to remaining in the European Union, albeit a reformed one. “Membership of the European Union is critical to the UK automotive industry; the sector’s competitiveness is dependent on access to the European single market, integrated supply chains, international trade agreements, common regulations, funding for innovation and free movement of labour,” wrote the SMMT in a statement yesterday, adding that its members “want to see reform of the EU with greater emphasis on industrial competitiveness and better regulation.”

Another SMMT priority is for the continued delivery of the Automotive Sector Strategy through the Automotive Council; its retention and continuation, it says, will be “essential in developing the supply chain, skills, technology and business environment to assure global competitiveness.” A third stated SMMT priority for a new government is an increase in the R&D tax credit rate and more funding for long-term initiatives, such as the Advanced Propulsion Centre. “Investment in skills will ensure the UK workforce has the capabilities to develop and manufacture the next generation of technologies,” the society wrote.