Revived demand drives new car sales to six-year high

SALES of new cars in the UK smashed through the 2.26m barrier in 2013, latest figures have shown. The performance is the best since 2007.

Figures released by the Society of Motor Manufacturers and Traders show 2,264,737 cars were registered in 2013, up 10.8% on 2012 and exceeding the society’s forecast of 2.25m.

Jaguar Land Rover enjoyed a strong year with sales of new Jaguars up almost 15%, while its 4×4 stablemate saw its registrations up 12.5% – two of the best performances across the whole industry.

The figures for last month were also strong as the market saw its 22nd consecutive monthly rise. On average, an additional 600 extra cars were registered per day in 2013 than in the previous year.

The results confirm the UK’s position as Europe’s second largest car market after Germany and the only one across the Eurozone to grow consistently throughout 2013.
The SMMT has predicted the 2014 market will stabilise with sustainable growth of around 1% over the year.

Mike Hawes, SMMT chief executive, 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.”