Car sales bounce back in February as registrations grow 26%

Car dealers enjoyed a successful second month of the year with new model sales growing by more than a quarter in February, according to figures released this morning.

New vehicle registrations were up 26.2 per cent year on year, with 74,441 motorcycles hitting UK roads last month, nearing pre-pandemic levels.

The numbers are the latest evidence that manufacturers are able to produce more units with diminishing supply issues as February marks a seven-month sequential growth in car sales.

As demand for new diesels continues to decline and demand for electrified models rises, statistics show that last month nearly one in four new cars had a plug.

Last month’s sales performance is a significant improvement over the previous two years and is now approaching a return to pre-pandemic levels

The Society of Motor Manufacturers and Traders said February is traditionally one of the quietest months for auto dealers, with many customers delaying purchases to get their hands on models following the March plate change – this year, shifting to 23rd plate.

Despite this and lingering concerns about the cost of living, the numbers show that demand for new models was strong last month.

With supply chain shortages showing further signs of easing, new car sales in February were much closer to pre-pandemic levels – down just 6.5 percent from the same month in 2020.

The trade body points out that February is traditionally one of the quietest months for car dealers, with many customers delaying purchases to get their hands on models with the new ’23’ plate that arrived this month

The trade body says there was “almost universal growth across the entire market” in February, with deliveries to private buyers up 5.8 percent and fleets taking on 46.2 percent more new engines than the same month in 2022.

In terms of fuel types, conventional diesel models were the only year-over-year decline, with sales down nearly 15 percent. That said, registrations for “mild-hybrid” diesel (those with a small extra battery on board) grew 9 percent, the SMMT data shows.

Self-charging hybrid electric vehicles (those without a plug) recorded the highest growth of all fuel types, up 40 percent.

Drivers continue to see these vehicles as an intermediate step between the transition from traditional petrol and diesel cars to fully electric models.

Gasoline (and mild-hybrid gasoline) models also recorded significant growth of 35.8 percent and continue to dominate the new car market.

In fact, nearly three in five (56.9 percent) of new cars purchased last month are unleaded.

Diesel sales alone were lower in February 2023 than 12 months ago, with conventional hybrid (HEV) registrations a whopping 40% higher than in 2022

Zero-emission vehicles continued their upward trend, with plug-in hybrids (PHEVs) up 1 percent and battery electric vehicles (BEVs) posting another strong month, up 18.2 percent, accounting for one in six new British car registrations.

That means that almost a quarter (22.8 percent) of all new car deliveries last month had a socket.

The SMMT expects nearly half a million (488,000) PHEVs and BEVs to hit UK roads by 2023 as manufacturers launch more than 40 new plug-in electric models.

Industry bosses said the responsibility for ensuring demand for these cars remains high rests firmly in the hands of the government and its efforts to improve charging infrastructure.

The trade body said it welcomed the new £56m investment in public appliance installations announced last month, but called for the introduction of ‘binding targets’ in the spring budget for the acceleration of charging point roll-outs to ensuring that the infrastructure ‘keeps pace’ with the explosive sales growth.

“This should include a long-term plan for investing in charging points, aligning VAT on public charges on household energy consumption and reviewing the vehicle excise tax that will unfairly penalize electric vehicle buyers in the future.” .

Mike Hawes, CEO of SMMT, added: ‘It is vital that the government takes every opportunity to support the market, which plays an important role in the UK economy and net zero ambition.

“As we enter ‘new license plate month’ in March, with more of the latest high-tech cars available, the upcoming budget should provide measures that encourage this transition, increasing affordability and ease of charging for all.”

Demand for battery electric vehicles and PHEVs also increased in February. It means that almost a quarter (22.8%) of all new car deliveries last month had a socket

Commenting on the impact on electric car sales, Nick Williams, transport director at Lloyds Banking Group, said: “If our charging infrastructure is to adequately serve the growing number of electric cars, it will need to be significantly expanded, both in terms of volume and the distribution. charging stations across the country.

With the new chancellor due to issue his spring statement this month, drivers will be looking to the Treasury to confirm investments that will support the UK’s charging network.

Likewise, individuals and businesses will hope for continued incentives to choose a zero-emissions vehicle over a higher-carbon alternative, with policies that take a fair, emissions-based approach.

“By supporting the UK’s infrastructure, industry and drivers, the Chancellor can help maintain the momentum the country is rapidly building on its electrification journey.”

Jim Holder, editor at What Car? said: ‘The latest new car sales figures are an encouraging boost for the UK car industry, but the ongoing cost-of-living crisis and high energy prices need to be carefully managed to continue accelerating EV adoption as needed to achieve goals.

‘Buying an electric car is usually more expensive than a car with a combustion engine, but this could previously be offset by lower running costs.

That comparison has become much more difficult in the cost-of-living crisis, and since the March plate change is traditionally one of the busiest times of the year for auto sales, we get a good indication of what that bottleneck is doing for demand. ‘

The Vauxhall Corsa returned to the top of the sales charts in February as demand for smaller models with lower purchase prices and running costs remains hugely attractive

These are the 10 best-selling new cars in February (left) and for January and February combined (right)

Vauxhall Corsa back at the top of the sales charts

Looking at February sales data by model class, ‘mini’ city cars saw the biggest jump, with sales up 66.1 percent.

This segment is becoming increasingly attractive to customers as household finances tighten and consumers look for lower cost vehicles with the lowest cost of ownership.

Superminis – which are slightly larger – also grew 37.7 percent year-on-year and now account for a third of all registrations (33.1 percent).

One of these is the Vauxhall Corsa, which was the best-selling model in February and topped the leaderboard for 2023 after two months.

Vauxhall sold 2,818 of its best-selling new car of 2021 and now leads the VW T-Roc and Nissan Qashqai SUVs in this year’s sales charts.

Multipurpose vehicles (41.9 percent) also posted a large percentage increase, the figures show, while executive and luxury sedans were the only segments to see a market decline, with 15.4 percent and 6.3 percent respectively.