8:04 am, June 5, 2014
NEW car registrations were up 7.7 per cent in May to 194,032 units – the highest figure for the month since 2004.
More than 194,000 cars were registered in May and helped total car registrations so far this year pass the one million mark, rising 11.6 per cent to 1,058,974 units.
The month of May was the 27th consecutive month of growth – breaking a record set in the late 1980s.
Mike Hawes, SMMT chief executive, said: ‘The new car market has now grown in every month since March 2012 – the longest period of growth on record and a reflection of the UK’s ever-improving economic conditions.
‘Over the past 27 months, increasingly confident consumers have been drawn to some fantastic new products, attracted by innovative technologies, improved fuel economy and competitive deals helping make a new car more affordable.
‘With the SMMT forecasting an overall rise of around six per cent over the year, the coming months should see some levelling off in growth rates as underlying demand stabilises.’
Richard Lowe, head of retail & wholesale at Barclays, said: ‘It’s great to see the longest period of growth on record – as well as improved consumer confidence, the two bank holiday weekends will have helped to fuel May’s increase, as consumers took advantage of the time off from work to visit car showrooms.
‘Looking ahead over the summer months it will be interesting to see if this holds firm, or whether we will see the growth rate drop down a gear. If there is a slowdown, all eyes will be on manufacturers and the actions they take to try to drive the market forward.’
