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The UK new car market grew for the eighth month in a row in March, producing the best 'new plate month' performance since before the Covid-19 pandemic.
According to Society of Motor Manufacturers and Traders (SMMT) figures, the market grew by 18.2% year-on-year, with 287,825 registrations.
This included a big increase in fleet sales, which were up by 40.9%. However, this was compared with a market in March 2022 when fleet sales had slumped by 34.4% compared with March 2021, as manufacturers at the time prioritised the retail market.
The effects of this can also be seen in private registrations only rising last month by 1.4%, while business registrations - classed as those to fleets with fewer than 25 vehicles - were up by 26%.
In terms of fuel mix, pure EV registrations were up by 18.6% year-on-year in March, for a 16.2% market share - with a total of 46,626 EV registrations the highest ever.
Plug-in hybrids were up by 11.8%, taking 6.2% of the market, while conventional hybrids were up by 34.3% for a 12.9% market share.
Mild hybrid petrol registrations were up by 30.7%, for a 14.9% market share, while mild hybrid diesels were up by 11.9% to take 4.5% of the market.
Pure petrol car sales rose by 16.5% for a 41.4% market share, but pure diesels were down by 19.9% to account for just 3.8% of the market.
The SMMT said March's overall market performance had contributed to 2023 having the strongest Q1 since 2019. It said that supply chain challenges were slowly continuing to ease.
SMMT chief executive Mike Hawes said: "March's new plate month usually sets the tone for the year so this performance will give the industry and consumers greater confidence.
"With eight consecutive months of growth, the automotive industry is recovering, bucking wider trends and supporting economic growth.
"The best month ever for zero emission vehicles is reflective of increased consumer choice and improved availability but if EV market ambitions - and regulation - are to be met, infrastructure investment must catch up."
Giving a more cautious reaction to the figures, LeaseLoco CEO John Wilmot said: "With supply chain constraints easing, an eighth consecutive month of growth shows new car sales are moving in the right direction. However, it would be foolhardy to declare the car industry is out of the woods just yet, because current numbers being posted are still well below pre-Covid levels.
"The industry was severely hampered by plunging consumer confidence and poor model availability in 2022, so it's not a great surprise that we are seeing high growth figures recorded every month this year compared to last. A more accurate indicator of where the new car market is right now is comparing March registrations with 2019 levels, a year before Covid struck and showrooms closed, when sales were above 450,000.
"Registrations last month were 37% lower than March 2019. This shows sales haven't miraculously bounced back and there's a large gap to close even to reach parity. We could be talking years before the new car market posts those kinds of numbers again.
"Also, supply chain issues may have abated but the car industry is now battling the impact of higher inflation and the cost-of-living crisis on consumer purchasing power and consumer confidence."
Giving his reaction, Nick Williams, transport managing director for Lloyds Banking Group - including Lex Autolease - said: "The introduction of the new 23 registration plate boosted the number of vehicles coming onto the UK's roads last month as drivers sought to get behind the wheel of the latest models, and it's encouraging to see the best month ever for electric vehicle registrations as their share of the new market continues to increase.
"Last week saw the government reaffirm its commitment to the ban on the sale of new petrol and diesel vehicles by 2030 and launch a consultation on the Zero Emissions Vehicle mandate. While it's yet to be seen if the finalised legislation will fully deliver on aims to boost the supply of electric vehicles in the country and drive investment in the sector, this latest announcement is a bold step forward on the journey to net zero.
"Drivers and businesses alike also welcomed the government's additional investment of over £380m to develop the UK's charging infrastructure, which will help drive the much-needed expansion of the network to cater for the growing number of electric vehicles on our roads."
Novuna Vehicle Solutions managing director Jon Lawes said: "Today's figures confirm the UK's ongoing willingness to move to Electric Vehicles, which is good news for the industry and supports the government's recent decision to commitment to the Zero Emission Vehicle mandate.
"However, we are seven years out from the government's 2030 target and the additional funding announced for EV infrastructure is just not enough to transform the charging provision nationwide, which is woefully inadequate.
"What we need to see is a sustained, joined up approach at government and local authority level, to deliver tangible action and at pace, to hit these targets and retain confidence in the industry and the market."
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