New car sales shows signs of recovery

Demand for new cars grew by 11.5% last month compared with March 2020, new figures show.

Figures from the Society of Motor Manufacturers and Traders (SMMT) say 283,964 newcarswereregisteredinthe UK last month despite showrooms remaining shut due to coronavirus restrictions.

The year-on-year increase was still 36.9% down on the average March total over the last decade and the industry’s turnoverbetweenJanuaryand March was down £1.8bn compared with the same period in 2020.

March is traditionally a strong month for car sales as new number plates are released.

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

"However,withshowrooms 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 that April 2020 wasawashout,butastrongand 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.”

Mr Hawes said the sale of electric care is likely to play a key role in the industry’s recovery

He said: "New plug-in models are already helping drive a recovery but to convince more retail consumers to make the switch they must be assured these new technologies will be convenient for their driving needs, and that means the charging infrastructure is there where they need it, and when they need it."