UK car market saw 7.6% January uplift

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.