New car market reached a 12-year high in January, according to SMMT

9:19 am, February 6, 2017

THE UK new car market achieved a 12-year high in January, according to figures published by the SMMT today.

A total of 174,564 vehicles left showrooms last month – a 2.9 per cent year-on-year uplift and the highest level since 2005.

Significantly, however, the alternatively-fuelled vehicle segment grew 19.9 per cent to take a record 4.2 per cent market share – the first time four per cent has been surpassed. Across other fuel types there was a mixed picture with diesel registrations down 4.3 per cent but new car registrations of petrol cars grew 8.9 per cent.

Across the market, private motorists led the growth, registering 76,729 new cars – up five per cent. Fleet demand also grew marginally by 1.4 per cent, while business registrations fell by one per cent.

Mike Hawes, SMMT chief executive, said: ‘2017 got off to a good start in the new car market, buoyed by a great range of new models which are safer and cleaner than ever before.

‘It’s encouraging to see alternatively-fuelled vehicles benefiting from this positive growth, reaching a record market share.

A good position

‘After record growth in 2016, some cooling is anticipated over the coming months, but provided interest rates remain low and the economy stable, the market is in a good position to withstand its short-term challenges.’

Ian Gilmartin, head of retail and wholesale at Barclays, said: ‘The new car market delivered again last month, with more growth leading to the strongest January sales in over a decade.

‘The rise in the number of alternatively-fuelled vehicles is very encouraging, but the really notable statistic is the five per cent jump in private sales. Even during the record-breaking months towards the end of 2016, private purchases tended to be slightly down on the year before, with fleet sales driving the strong numbers, so the industry will be delighted with the better figures for sales to individuals this time.

‘These private sales have been boosted by the incentives on offer, and the next question for sellers to answer will be how sustainable these incentives are in the medium term, especially as cost inflation begins to set in. We can expect more modest sales as 2017 develops, but for now this sustained growth should be applauded.’

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