9:05 am, July 6, 2016
THE UK new car market grew by a steady 3.2 per cent in the first six months of the year, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).
So far in 2016, 1,420,636 new cars have been registered – the best half-year performance ever recorded.
Growth was reported across all fuel types, with diesel and petrol registrations growing 2.3 per cent and 3.0 per cent respectively in the year-to-date.
Meanwhile, alternatively fuelled vehicles (AFVs) continued the significant gains seen over previous months, up 21.3 per cent compared with the first six months of 2015. AFVs now account for 3.2 per cent of the overall new car market.
Demand in June eased slightly, with a -0.8 per cent fall in registrations, meeting expectations that market growth would stabilise following a record 2015. Fleet registrations continued the trend of recent months, driving the market with a 4.5 per cent rise and compensating for a 4.5 per cent drop in private registrations.
Mike Hawes, SMMT chief executive, said: ‘It is far too soon to determine whether the referendum result has had an impact on the new car market. The first six months saw strong demand at record levels but the market undoubtedly cooled over the second quarter. It’s important government takes every measure to restore business and economic confidence to avoid the market contracting in the coming months.’
Richard Jones, managing director of Black Horse, one of the UK’s leading motor finance providers, and part of Lloyds Banking Group, said: ‘It is natural to see figures cooling after the incredible growth of recent years. We know that some key drivers of growth such as the increased penetration of PCP are already very high so cannot simply continue to grow at such a pace.
‘However, despite potential increased challenges in H2, the approach of Black Horse will not change – we remain committed to keeping dealers central to the car buying journey.’
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