New car sales reach 12-year high in January
The UK new car market saw a strong start to the New Year with sales in January reaching a 12-year high.
Figures released by the Society of Motor Manufacturers and Traders show 174,564 vehicles left showrooms last month – a 2.9% year-on-year uplift and the highest level since 2005.
The alternatively fuelled vehicle segment grew 19.9% to take a record 4.2% market share – the first time 4% has been surpassed. Across other fuel types there was a mixed picture with diesel registrations down 4.3% but new car registrations of petrol cars grew 8.9%.
Across the market, private motorists led the growth, registering 76,729 new cars – up 5%. Fleet demand also grew marginally by 1.4%, while business registrations fell by 1%.
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.
“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.”
Strong sales across North America and China helped Jaguar Land Rover achieve its best-ever January, selling 47,693 vehicles, up 4% year-on-year.
The performance was all the more impressive because Land Rover sales dipped 11% for the month; the run-out of the old Discovery model being blamed.
Nevertheless, sales of the Land Rover Discovery Sport improved, together with the Range Rover Sport and the group’s latest stellar performer, the Jaguar F-Pace.
Retail sales grew across many of the group’s key regions year-on-year: North America was up 29%, China up 14% and the UK up 3%. Europe and other overseas markets were down for the month.
Andy Goss, Jaguar Land Rover Group Sales Operations Director said: “Impressive performances across North America and China have boosted our sales this month, helping us to achieve record January results. Collectively, these two key markets have achieved almost 23,000 sales.
“Land Rover sales are set to strengthen in the coming months, as the all-new Discovery hits global dealerships.”
Jaguar recorded its best-ever January, delivering 13,949 vehicles, up 76% on the previous year, reflecting continued success of the F-Pace and the XF.
Land Rover sold 33,744 vehicles in January, down 11% due to the run-out of the previous generation Discovery. The best-seller for the month was the Discovery Sport, retailing 10,454 vehicles, up 10% year-on-year.
In the UK, Jaguar sales rose 19.6%, with Land Rover up almost 18%. The performance was better than any of the group’s main German rivals – Audi (up 1.42%), BMW (up2.7%) and Mercedes-Benz (up 10.6%).
Commenting on the SMMT figures, Keith Parry, Retail & Wholesale Relationship Director at Barclays in the Midlands, 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 5% 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.”
