UK car registrations rise for 20th consecutive month prompting a revision of growth forecasts
NEW car registrations in the UK rose for the 20th consecutive month during October – with a massive 54% increase in the number of business buyers, latest data has shown.
The Society of Motor Manufacturers and Traders (SMMT) said new car registrations rose 4% last month to 157,314 vehicles (2012: 151,252). For the year to date, new registrations are up 10.2% at 1,952, 238 (2012: 1,771,861).
Best performers included Mercedes Benz (+28%), Audi (16.2%), Land Rover (+14.4%) and Jaguar (+11.7%). However, BMW declined by 14.7%.
Such is the growth that the SMMT has revised its new car forecast for 2013 to 2.25m – from 2.22m – although it has said the market will probably stabilise next year and in 2015 with growth of around 1%.
While private registrations increased by 4.5% last month, the most startling improvement was in the business sector with the figures up 54.1% to 8,199 (2012: 5,319).
Mike Hawes, SMMT chief executive, said: “With October new car registrations up we have now seen 20 consecutive months of growth. These sustained rises have been driven by robust private demand, a trend that has given us the confidence to raise our year-end forecast to 2.25m units – 10% ahead of last year. Looking ahead, we anticipate more moderate growth as the market stabilises.”
Commenting, Peter Gallimore, manufacturing partner at Deloitte in Birmingham said: “October was the 20th consecutive month of growth in the new car market, but also the first month since February 2013 where double digit growth has not been achieved. New car sales have been climbing back towards the levels achieved at the height of 2007 as cheap finance is readily available, but questions about the sustainability of this growth rate remain.”
Jim Quantrill, relationship director for Retail & Wholesale at Barclays in the Midlands added: “October is historically a good month for new car sales, thanks to the hangover of the popular September plate change but, this October has proved exceptional. As we drive into the traditionally quiet winter months we predict sales will continue to hold steady, keeping the UK market ahead of Europe.”
