9:41 am, January 7, 2014
NEW car registrations in 2013 grew by 10.8 per cent over 2012 to 2,264,737 units, according to the latest SMMT figures.
According to SMMT, 2013 hit the highest annual registration total since 2007, as December achieved the 22nd consecutive monthly rise.
On average, an additional 600 extra cars were registered per day in 2013 in comparison to the previous year.
The market in 2014 is expected to stabilise with growth of approximately one per cent across the year.
SMMT chief executive, Mike Hawes, said: ‘With its best year since a pre-recession 2007, the UK new car market has helped stimulate the country’s economic recovery. While the European market is only now showing signs of improvement, the UK has consistently outperformed the rest of Europe with 22 consecutive months of growth.
‘The 10.8% increase in 2013 reflects the attractive financial offers available as well as increased demand for more technologically advanced new cars. We expect new car registrations to remain stable in 2014 as customers return to a more regular replacement cycle.’
Commenting on today’s figures Richard Lowe, head of retail and wholesale at Barclays said: ‘The attractive incentives available to consumers in December have contributed to another strong result, rounding off a triumphant and exceptional year for the UK market. As we motor into 2014 we’re likely to see a similarly strong start, but are expecting a slower and steadier rate of growth over the course of the year when compared to the dramatic growth seen in 2013.’
Sue Robinson, director of the National Franchised Dealers Association also comments on the SMMT’s new car registration figures: ‘It is extremely encouraging to see that the car market is back performing at pre-recession level.
‘Competitive offers by manufacturers along with strong finance offers boosted sales as consumer confidence returned to the market. Car showrooms have reported increased sales activity and interest from consumers looking to replace their vehicles, which is some cases are part of the aging car park or not as fuel or energy efficient as modern vehicles.’
She added: ‘The NFDA expect the market to continue to perform well and to build on the success of 2013.’
Also commenting on the figures John Leech, KPMG UK head of automotive, added: The real story in 2013 has been the success of the Personal Car Plan offered by car manufacturers – indeed the way the British buy cars has been truly transformed.
‘Gone are the days where the consumer asks the bank for a personal loan. Car dealers now sell finance with the car where half the price is paid over 36 months and the remaining half is cleared by a bullet payment at the end of the three years. This has been great for new car sales as consumers choose to take a new car on another PCP rather than pay the bullet. However, the danger for car manufacturers and used car dealers is that the supply of three year old cars is starting to ramp up and, maybe in a year or two from now, will exceed demand leading to a potential residual value price crash and increased risk of loan default by consumers.’
