New car market increases by 5% as buyers show faith in economy
CONSUMERS have continued to show their confidence in the UK economy by investing in new vehicles.
April’s new car registrations show the market increasing by more than 5% compared with the same month last year. It is the strongest April for a decade, driven by a 9% increase in the fleet market and a 2.7% growth amongst private buyers.
In total, 185,778 new vehicles were registered (2014: 176,820) and year-to-date registrations for 2015 are up 6.4% to 920,366.
The Society of Motor Manufacturers and Traders (SMMT) said April’s strong performance, which comes after a record first quarter for the sector, tracked a 12-year high for consumer confidence and continued a pattern of growth in new car registrations around General Elections that dates back to 1979.
It said demand in the period following the election would continue in line with the growth trend and as new products, attractive finance deals and low interest rates were introduced, so consumers would continue to give the industry the vote of confidence.
Mike Hawes, SMMT Chief Executive, said: “The figures highlight the current strength of consumer confidence, even at a time of such political uncertainty. We are confident that the UK’s new car market – so symbolic of economic mood – will continue to thrive, but long-term success will depend largely on economic and political stability in the months and years ahead.
“The next government must act quickly to uphold economic certainty and reassure consumers and markets.”
Most of the major manufacturers benefited from the continuing show of confidence, although the month marked a major watershed for one famous firm, Vauxhall.
The GM subsidiary has been toppled from its second spot to Ford in terms of market share; replaced by Volkswagen.
The German company enjoyed a strong month with its Golf model number three in the top 10 best sellers after Ford’s Fiesta and Focus. Vauxhall’s Corsa was fourth but VW also fared well with its Polo placed sixth in the table, with Vauxhall’s Astra down in eighth spot.
Fellow German marques Audi, BMW and Mercedes-Benz also picked up, claiming respectively 4th, 5th and 6th spots in terms of market share. BMW was also buoyed by a strong performance from Mini, which saw growth of almost 32% for the month compared to last year.
Jaguar buyers seem content to play a waiting game, with the arrival of the new XE this month and a new XF in the pipeline many are thought to have delayed purchase orders so they can take a closer look at the new model.
The company saw a near 5% decline in orders for April as a result, although there was better news for stable mate Land Rover, which saw a 27% increase in sales during April compared with the same month last year.
In the luxury sector, Aston Martin saw a 22% increase in sales with 71 cars being registered last month against 58 in the April last year. Bentley did not fare as well. Its sales were down almost 5%, with 103 cars registered against 108 for the same month last year.
