Worst February for UK new car registrations since 1959

New figures from the Society of Motor Manufacturers and Traders (SMMT) reveal that last month was the weakest February for new car registrations in the UK since 1959. 

The organisation noted that although February is a "traditionally quiet month" as buyers hold out for the numberplate change in March, ongoing restrictions on the car retail sector meant demand was even lower than usual in 2021.

The 51,412 new cars registered nationwide during the month represents a 35.5% decline year on year and has prompted the SMMT to revise its registrations forecast for 2021 from 1.89 million to 1.83m.

The SMMT predicts that most of the year's losses to occur in March. With showrooms in England forced to remain closed until at least 12 April, click-and-collect services are unlikely to foster the same boost in demand that usually accompanies a bi-annual plate change.

Registrations in February declined across both the private and fleet sectors, by 37.3% and 33.5%, respectively. Business sales - traditionally much lower - dropped a significant 56.6% to just 637.

The drop was registered across all vehicle segments except the relatively small luxury saloon segment, which recorded a 3.8% increase. 

However, alternatively fuelled cars continue to rise in popularity relative to the rest of the market, with plug-in hybrid (PHEV) registrations rising 35.2% year on year to 9255 and battery-electric vehicles (BEVs) by 49.0% to 9776.Overall, BEVs and PHEVs accounted for 13.0% of all registrations in February, compared with just 5.7% in the same month last year. 

By contrast, registrations of non-hybrid petrol cars plummeted 48.5% and their diesel counterparts by 61.7%. 

The news comes the day after chancellor Rishi Sunak unveiled a wide-reaching pandemic recovery plan as part of the 2021 Budget, which the SMMT criticised for being "a missed opportunity, given the lack of measures to support the market overall and notably the transition away from pure-petrol and diesel cars and vans."

SMMT chief executive Mike Hawes reacted to the figures: "February is traditionally a small month for car registrations, and with showrooms closed for the duration, the decline is deeply disappointing but expected. More concerning, however, is that these closures have stifled dealers’ preparations for March, with the expectation that this will now be a third successive dismal new plate month.

"Although we have a pathway out of restrictions with rapid vaccine rollout and proven experience in operating click-and-collect, it's essential that showrooms reopen as soon as possible so the industry can start to build back better and recover the £23 billion loss from the past year."