Peter Vosper: New car market up over 10% in March to best year since 2019

The new car market bounced back in March but business and fleet sales were the big winners with the private market still nervous about inflation and interest charges. Plug-in hybrids were up 36.7% as business and private drivers continued to take advantage of big benefit-in-kind savings. Manufacturers have placed their emphasis on fleets who are overdue for change and can make volume purchases while the private buyer is being more cautious until it is clear interest rates are going to fall along with inflation throughout the rest of the year.

There is also hope the government will offer incentives to electric car buyers but this is unlikely until they see manufacturers bringing out smaller and more affordable electric cars and the infrastructure grows to give more confidence to the private
buyers. We are beginning to see more Chinese product entering the country with some very competitive prices and brands like MG, BYD and Ora will be followed by Chery’s Omoda and Jaecoo in May and July.

It was a bumper March for new commercial vehicles as fleet demand surpasses 50,000 units. Ford took the top three places with Transit Custom, Transit and Ranger as light commercial sales improved by 11.1%. Electric light commercial vehicles increased just short of 10% but this will have to increase further if some manufacturers are to meet their 22% targets and not get heavily penalised. The used car market was back to normal with many new car buyers seeking out virtually new product and prices now stabilised and looking attractive to some potential new car buyers. Hopefully, the big swings of prices caused by the lack of new product post covid have disappeared with the improvement in new car supply and normality has now returned.
The National Franchised Dealer Association (NFDA) released the results of their winter Realer Attitude Survey with Mini and Kia finishing in joint top position.

The biggest improvements against last summer survey were DS, Jeep, Vauxhall, Fiat, Citroen, Peugeot and Alfa Romeo with Volvo, Audi, Cupra, Mazda, MG, and Land Rover the manufacturers whose rating decreased the most. With much change going on at this time and many manufacturers cutting their number of dealers it is an uncertain time and many long-established dealers are concerned about their future. This will mean less choice for many motorists in the rural areas and the need to drive longer distances to get warranty work and manufacturer approved services carried out. This is particularly relevant for Motability scheme drivers who must return their cars to their nominated main dealer for service and repair work and find they do not have a dealer for the brand they would prefer in their immediate area.

Many of these drivers rely on their vehicles to shop, visit family and friends and generally get around, so dealers will have to look at solutions like collection and delivery to resolve the problem. Motability sales are growing this year and represent an important service in the market for these customers and they must not be disadvantaged.