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March new car sales soar to all-time records in race to beat new road tax

Ford Fiesta best selling car March17
The outgoing Ford Fiesta kept its best-seller position with the race to beat the road tax rises

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5 April 2017

Record new car registrations for March and Q1 2017

  • Market rises 8.4% in March to be the biggest ever month  – 562,337 new cars registered.
  • Registrations jump 6.2% in Q1 2017 to 820,016 units – a new record quarter.
  • Consumers bring forward purchases to avoid new VED charges.
  • 244,263 diesel cars sold in March – more than any other single month, up 1.4% on year.
  • 295,256 petrol cars sold, up 13.2%, widened gap over diesel
  • 31% rise in alternatively fuelled vehicle to top 4% of market

MARCH saw new car sales soar to all-time records, up 8.4% at well over half a million registrations, to smash the 20-year-old previous record for a month by nearly 40,000 according to SMMT figures.

Fleets and businesses were the big contributors, with registrations up 12.6% and 11.9% respectively in an astute strategy to beat tax rises, though demand from private buyers also grew, up 4.4% to reverse the dip the previous month.

The customary push for the17-plate new registration was further boosted by demand to beat the new road tax system introduced on April 1 that adds substantially to the costs of running a car, particularly those low emission  petrol and diesel models and hybrids that had enjoyed VED at no cost or just £20 or £30 now rising to £130 or £140.

new car sales soar

This was illustrated by the soon-to-be-replaced Fiesta keeping its best-seller position as Ford total vehicle sales hit their highest March level with total sales of 92,467, against 80,975 in March 2016, as the UK market leader out-performed the industry, extending its lead over its nearest rival in total vehicle sales by 80% compared to March 2016.

But there were celebrations in the premium sector too as a Jaguar Land Rover vehicle was registered every 30 seconds in March. Britain’s biggest car manufacturer continued a record-breaking start to 2017 with its best March sales in its history – Jaguar sales up 68% to 9,484 and Land Rover achieving 22,283 sales, up 14%, driven by a raft of new models.

Commenting on their performance, Jeremy Hicks, JLR UK MD, said:  “After a record-breaking 2016 and start to 2017 we are continuing our momentum with these March figures. In the midst of the current uncertain economic climate it shows that the Jaguar and Land Rover brands are stronger than ever here in the UK.”

“New products are driving this success, with both brands now offering a range of vehicles that suit the lifestyles and appeal to more buyers than ever before. We are no longer an attractive alternative but a serious rival to our established competitors. With new models on their way throughout 2017 this momentum looks set to continue.”

For Jaguar, the XE enjoyed its best month in the UK since its 2015 launch, retailing 3,359 vehicles. The F-Pace continues as the fastest-selling Jaguar ever.

The overall new car sector record performance  – against the previous best of 525,897 new cars registered in August 1997 – came as buyers seized the chance to buy cars before the new vehicle excise duty (VED) rates came into force. From 1 April, under the new system all new cars, except for those with zero emissions, are subject to an annual flat rate charge.

The March tally also brought a record first quarter, with the new cars registered more than double the 257,679 total in the first two months of the year combined making 820,016 new cars driven off forecourts in the first quarter of 2017, up 6.2% on the same period in 2016 (771,780 ).

saw new car sales soar to all-time records,

Following the recent trend, consumers are increasingly looking to invest in the latest low-emission technology, with March seeing a 31.0% surge in registrations of alternatively fuelled vehicles to account for 4.1% market share – nearly a tenth of the diesel share.

Petrol cars enjoyed a notable uplift too, growing 13.2%, while demand for diesels rose 1.4% on the previous year, with nearly a quarter of a million buyers choosing them at 244,263  – the most ever in a single month.

Andy Barratt, Ford of Britain chairman and managing director, said: “Sales gain a massive boost in March thanks to the number plate change and, coupled with the introduction of changes to the Vehicle Excise Duty, this March has seen Ford’s best-ever car and CV ranges record the highest ever level of registrations.

“Ford’s long-standing market leadership is being consolidated by the strength of our more profitable retail sales and is testament to our continued investment in exciting products and industry-leading technology that customers are choosing.”

Mike Hawes, SMMT chief executive, said: “These record figures are undoubtedly boosted by consumers and businesses reacting to new VED changes, pulling forward purchases into March, especially those ultra-low emission vehicles that will no longer benefit from a zero-rate fee.

“This bumper performance probably means we will see a slowdown in April, exacerbated by the fact there are fewer selling days this year given Easter timing.

“Looking ahead to the rest of the year, we still expect the market to cool only slightly given broader political uncertainties as there are still attractive deals on offer.” 

saw new car sales soar to all-time records,

 

 

 

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