New car sales were down 14.3pc in March

Just 243,479 new cars were registered last month, the Society of Motor Manufacturers and Traders (SMMT) said.

That is down 14.3 per cent compared with March 2021.

It is the lowest March total since 1998, which was prior to the introduction of new number plates every March and September.

Luxury car maker Jaguar Land Rover's UK sales decline was worse than the average. It sold 2,301 Jaguars – down 40.7 per cent – and 6,872 Land Rovers – a fall of 54.4 per cent.

MG, based at Longbridge, bucked the trend with a 136.7 per cent rise to 9,367.

Ford was the top selling brand at 17,834, just ahead of Kia at 17,820.

SMMT chief executive Mike Hawes described the figures as "deeply disappointing", with March crucial for the industry because it is normally the busiest month of the year as buyers demand the latest number plate.

He said: "While demand remains robust, this decline illustrates the severity of the global semiconductor shortage, as manufacturers strive to deliver the latest, lowest emission vehicles to eagerly awaiting customers.

"Placing orders now will be beneficial for those looking to take advantage of incentives and lower running costs for electric vehicles, especially as the Ukraine crisis could affect supply still further.

"With increasing household and business costs, Government must do all it can to support consumers so that the growth of electric vehicles can be sustained and the UK's ambitious net zero timetable delivered."

The UK has pledged to reach net zero for carbon emissions by 2050.

The help achieve this, sales of new petrol and diesel cars and vans will be banned from 2030.

A record 64,165 battery electric vehicles were registered in March. That is up 78.7 per cent on the same month in 2021, taking a 16.1 per cent market share.

More BEVs were registered last month than during the whole of 2019.

Alex Buttle, co-founder of used car marketplace Motorway.co.uk, said: “New car sales are still firmly stuck in the slow lane and struggling to gain any momentum, with vehicle availability continuing to be hampered by supply chain issues and the ongoing microchip shortage.

“Considering that car showrooms remained shut in March 2021 due to lockdown restrictions, and last month should have seen a boost from the release of the new '22 reg plate, a 14 per cent drop in sales in March 2022 is disappointing.

“With little evidence to suggest that supply chain and microchip challenges will ease any time soon, buyers are likely to face lengthy delivery times for new car purchases for the foreseeable future. "

James Fairclough, chief executive of AA Cars, said: “Thile the volume of sales is down, there is a rapid transformation underway in what drivers are buying. Diesels continue to fall out of favour, and during the first quarter of 2022 they accounted for barely five per cent of all new cars sold – half the market share they enjoyed during the first three months of 2021. At this rate, new diesel sales will be all but over long before they are banned in 2030.

“At the other end of the spectrum, electric vehicle sales continue to go from strength to strength, posting their best ever month in March. More battery EVs were sold in March than were sold in the entirety of 2019."

John Wilmot, chief executive of car leasing comparison website LeaseLoco, said: "Fueled by the high cost of diesel and petrol at the pumps, Tesla powered to the top of the best seller chart in March, filling the top two spots.

"For the first time ever, the two best selling cars were electric last month. As the electric car revolution gathers pace this is likely to become commonplace as more people have the confidence to switch."