SMMT: Electric vehicles rise to 13.9% of UK car market share

Figures released by the Society of Motor Manufacturers and Traders (SMMT) show that the UK new car market has seen "growth" for the first time since August 2020, with 29,280 more new cars registered in March than in the same period last year. However, registrations fell 44.4% in March 2020, when the first restrictions on social interaction were introduced in the UK and the pandemic brought the country to a standstill.

Compared to March 2010-2019 (average 450,189), registrations were 283,964, a 36.9% decrease. In the first quarter of 2021, 58,032 fewer cars were registered than in the same period last year, equivalent to a loss of £1.8 billion in turnover in the first quarter.

For the auto industry to return to pre-pandemic levels, about 8,300 new cars would need to be registered each trading day for the rest of the year. By comparison, the industry has averaged about 7,400 new cars per day over the past decade and the current level is closer to 5,600 per day.

Successful investment by manufacturers and their networks into digital channels has the potential to boost sales. However, click and collect does not provide consumers with the same experience and excitement as a showroom environment. Car dealers have lost £22.2 billion in turnover since March 2020.

While overall registrations were up slightly compared to last year, the growth came almost entirely from fleet registrations, which rose 28.7%. Retail consumer demand remained subdued, down 4.1% compared to March 2020 as showrooms remained closed that month.

The shift to new technologies continues as demand for plug-in vehicles reaches its highest level ever. The market share of battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) rose to 13.9% from 7.3% last year, and the number of models available to customers increased from 72 to 116. BEV registrations increased by 88.2% to 22,003, while PHEV registrations increased by 152.2% to 17,330. Hybrid electric vehicles (HEV) also rose by 42% to 21,599.