New car registrations smash 2.26m barrier to reach 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 Jaguar’s 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.”

Market trends show that since 2008, the UK has seen a shift away from the Upper Medium segment towards smaller cars in the Mini and Supermini segments, as well as the MPV (multi-purpose vehicle) and Dual Purpose segments.

The change in buying patterns has been driven by the demand for smaller, more fuel efficient models, as well as the greater versatility offered by these style.

Dual Purpose sales overtook Upper Medium volumes in 2013 to become the third largest segment. The Supermini segment remains the largest by volume, with a market share in 2013 of 35.9%.

The figures show all types of vehicles recorded growth in 2013, although it was the private sector that saw the largest volume gain.

Improving consumer and business confidence, after an extended hold-off period and a competitive market place helped sales to grow, added the SMMT.

The increase in private registrations accounted for two-thirds of overall market growth. In 2013 private buyers accounted for 47.5% of the market, up from 45.5% in 2012.

Elsewhere, registrations of hybrid and plug-in cars rose 17.5% in 2013 to 32,727 units. In 2011, plug-in vehicles (pure electric, plug-in hybrids and range extenders) accounted for 4.7% of AFV sales; this increased to 12.3% in 2013. Within the past two years the number of plug-in models on sale has increased from six to 17.

The UK has been a key market in an otherwise subdued European economic marketplace. In 2013, the UK consolidated its position as the second largest market in Europe after Germany.

Data to November 2013 shows the UK market up 9.9%, whereas the EU market as whole was down 2.7% – or over 300,000 units.

The Spanish market benefited from a scrappage incentive scheme like the one seen in the UK in 2009. As a result, volumes rose 2.1% in 2013, while the German market was down almost 5% and France and Italy were both down by more than 7%.