March 2021 new car sales grow for first time in 7 months

April 6, 2021

21-plate Nissan Juke on a retailer forecourt

March 2021 new car registrations grew for the first time since August 2020 with sales in the plate change month rising 11.5 percent.

The turnaround came despite retailer showrooms remaining closed due to the pandemic – although the figure is still a hefty 36.9 percent off the 10-year average figure for March.

A total of 283,964 new cars were registered: the usual run rate for the March new car registration month is around 450k vehicles.

Showrooms will finally reopen on 12 April but in embracing ‘click and collect’, car manufacturers and retailers have provided a lifeline for the automotive industry.

Even so, trade body the Society of Motor Manufactures and Traders expects further sales growth when car dealers reopen as click and collect “does not offer the same experience and excitement as a showroom”.

Dealers will be hoping they can start to recover some of the £22.2bn in lost turnover since the pandemic took hold in March 2020.

EVs continue charge

Plug-in vehicles hit their highest-ever sales last month, with battery electric vehicles and plug-in hybrid models taking a combined market share of 13.9 percent.

This is almost double the figure of a year ago – and when hybrid vehicles are added in too, electrified vehicles commanded a 21.4 percent share of the new car market.

Compared to a year ago, BEV sales were up 88.2 percent and PHEV sales rose 152.2 percent.

A growth in fleet car sales – where there are favourable tax advantages for electric cars – helped the surge in electrified vehicles.

Diesel, in contrast, plunged to a 19 percent share.

“The past year has been the toughest in modern history and the automotive sector has, like many others, been hit hard,” said SMMT chief executive Mike Hawes.

“However, with showrooms opening in less than a week, there is optimism that consumer confidence – and hence the market – will return.

“We know we will see record breaking growth next month given April 2020 was a washout, but a strong and sustainable market is possible if customers are attracted to the choice and competitive offer the industry is able to provide within the safest of showroom environments.”

March 2021’s top new cars

The Vauxhall Corsa continued to lead the best-sellers chart, ahead of the Ford Fiesta and Mercedes-Benz A-Class.

Tesla sprang one of its frequent sales surprises in taking fourth with its enhanced Model 3, beating the Nissan Qashqai, BMW 3 Series and Volkswagen Golf.

The award-winning Toyota Yaris was eighth, ahead of the Ford Puma and Mini.

The Vauxhall Corsa is also leading the year-to-date sales, again ahead of the Ford Fiesta, with the British-built Nissan Qashqai – which is replaced later in 2021 – in third.