UK car market rises 7.6% in January but JLR sees sales dip
CONFIDENCE in the UK car market appears to have carried on the trend from 2013 into the New Year with registrations of new cars in January up 7.6%.
The Society of Motor Manufacturers and Traders said 154,562 new cars were registered last month with buyers attracted by more fuel efficient models. Typically a new car is around 27% more efficient than a seven-year-old model.
Cost-conscious consumers also turned to alternatively-fuelled vehicles, with registrations in that segment increasing 25% over January 2013.
Despite the strong January, the SMMT has predicted that 2014 is likely to see more moderate growth than in 2013.
“The new car market ended 2013 on a high, so it is encouraging to see the January market start the year strongly, rising 7.6%,” said Mike Hawes, SMMT chief executive.
“As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars. Looking ahead, the UK automotive industry expects to see moderate, sustainable growth in 2014.”
It was a disappointing month for Jaguar Land Rover with new registrations down for both marques. Jaguar sold 1,093 cars (2013: 1,207), a drop of 9.4%, while Land Rover registered 4,384 vehicles (2013: 4,665), a decline of 6%.
By comparison, rival BMW saw registrations rise 26% as it saw the registration of 7,923 vehicles (2013: 6,279).
In the luxury sector, sales of Aston Martin – which yesterday announced it was recalling 17,000 cars manufactured since 2007 because of concerns about potentially defective parts – dropped by half to 50 (2013: 100), while Bentley increased registrations by 94% to 155 (2013: 2013: 80).
In the volume sector, Ford nabbed the first two places in the best sellers list with its Fiesta and Focus respectively, to retain the leading market share at 14.1%. Nearest rival Vauxhall declined 18.4% as registrations dipped to 14,892 (2013: 18,253), reflecting the overall decline of General Motors globally.
Commenting Peter Gallimore, manufacturing partner at Deloitte in the West Midlands, said: “The UK new car market has continued the recovery that started some 23 months ago with a positive start to 2014. Indeed, the new registrations for January are the highest recorded since 2008.
“Although this is too early to draw any significant conclusions, the level of sales will be a cause for optimism that the momentum achieved during 2013 has not been washed away by the particularly wet start to the year.”
