Corona Crisis – March UK New Car Registrations Fall -44.4% 

The UK new car market declined -44.4% in March, according to the Society of Motor Manufacturers and Traders (SMMT). During the important plate change month, 203,370 fewer cars were registered than in March 2019, as showrooms closed in line with government advice to contain the spread of the coronavirus.

The performance represented a steeper fall than during the 2009 financial crisis and the worst March since the late nineties when the market changed to the bi-annual plate change system. With lock-downs taking place in many European countries earlier than the UK, even more dramatic falls have been reported elsewhere, with Italy down -85%, France -72% and Spain down -69% in March.

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In total, 254,684 new cars were registered in the month, with demand from private buyers and larger fleets falling by -40.4% and -47.4% respectively. Meanwhile the numbers of petrol and diesel cars joining the road were down -49.9% and 61.9%.

Early adopters, who were able to take delivery of the latest alternate fuel cars before the crisis took hold in the UK saw registrations of battery electric vehicles (BEVs) increasing almost three-fold in the month to 11,694 units, accounting for 4.6% of the market; Plug-in hybrids (PHEVs) grew 38.0%. Uptake of hybrid electric vehicles (HEVs), however, fell -7.1%.

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Many car showrooms are likely to remain closed for the coming weeks as companies are still working to ensure deliveries to critical workers, and the industry is also striving to keep sufficient service and repair workshops open to maintain vehicles which are helping to deliver essential goods and services across the country.

March sales report comes as SMMT downgrades its interim market outlook for the year to 1.73 million registrations – a -23% decline on the previous outlook made in January and some -25% lower than the 2.31 million units registered in 2019.  A further outlook will be published in April to reflect the latest plague conditions.