SMMT figures show that a total of 492,774 cars were registered in March, up 6.0% on same month last year and marking the best month since the twice-yearly number plate changes were introduced in 1999.

The fleet market saw particularly strong results in March, with a rise of 11.6%, from 196,304 units in March 2014 to 219,153 last month. However the sub-25 business sector saw a decline of 6.6% from 22,032 units to 20,578. Private registrations rose 2.7% to 253,043 units.

Year to date, the fleet market is up 14.6% from 309,545 units to 354,690 whilst the business sector has fallen 8.4% from 30,909 units to 28,327. Overall registrations so far this year have increased by 6.8% to 734,588.

In response, Anil Valsan – global lead analyst-automotive & transportation, EY, said: “Car sales in the UK sustained their longest stretch of growth, rising for the 37th consecutive month in March, with a 6.8% increase during the first three months of 2015. Car sales in March recorded the highest sales in a month, in over 15 years. The trend was driven by rising consumer confidence, new product launches, lucrative financing schemes, dealer incentives and attractive personal contract purchase deals. The UK’s consumer confidence in March rose to its highest level in more than 12 years.

“The country’s GDP grew 0.6% q-o-q in 4Q14, marking the eighth consecutive quarter of growth. However, the pace of growth eased as compared to the previous quarter, owing to a contraction in the construction, mining and energy supply industries. Nevertheless, full-year GDP growth stood at 2.8% in 2014, marking the highest pace of growth since 2007. The increase was driven by an expansion in production, services and household spending, coupled with strong growth in exports. The unemployment rate declined to 5.7% in the three months to January, with the number of employed people at an all-time high.

“During January-March, car sales to fleets witnessed strong growth, pointing to increased business confidence. This indicates a robust company car market, on the back of the attractive financing offers currently available. During the period, sales to fleet buyers (accounting for 48.3% share) increased by 14.6%, while sales to private buyers (accounting for 47.9% of the total) increased by 1.1%. However, sales to business buyers (accounting for 3.9% share) witnessed a decline of 8.4%.

“Diesel car sales (accounting for 47.6% share) and grew by 4.4%, while petrol car sales (accounting for 49.6% of overall sales) grew by 7.0%. However, consumers are gradually moving away from diesel cars due to an impending action against older diesel vehicles, and problems of air pollution primarily caused by diesel-powered engines. Sales of alternate fuel vehicles grew at a strong 62.6% (albeit on a low base, accounting for 2.8% of overall sales). These were driven by rising government support for ultra-low emission vehicles (charging infrastructure and subsidies) and new model launches, coupled with a growing desire for reduced costs and greater efficiency.

“Looking ahead, GDP is expected to witness a growth of 2.5% on the back of falling oil prices that will continue to boost household spending. However, uncertainty around the upcoming elections in May and the renewed issues in the Eurozone are expected to pose risks to the magnitude of growth.

“Low financing rates, along with continued incentives from automakers and dealers, are expected to drive car sales in 2015. However, with an extended period of consistent growth, car sales are expected to level off during the year, and are likely to witness a moderate growth of 1%–2%.”