New car registrations continue strong growth as consumer confidence strengthens
NEW car registrations rose for the 26th consecutive month in April, new figures have shown. The 8.2% growth was more modest by comparison to March’s inflated figure but is still an indication of a healthy sector.
The Society of Motor Manufacturers and Traders said the continuing improvement was due to strengthening economic conditions and robust consumer confidence.
In total, 176,820 new vehicles were registered last month, while volumes for the year-to-date reached 864,942, an increase of 12.5%.
The situation has prompted the SMMT to revise up its 2014 market forecast from 2.3m to more than 2.4m registrations.
Mike Hawes, SMMT chief executive, said: “After the bumper plate-change month of March, the UK car market returned to more modest but still positive growth in April, with new car registrations up 8.2% to 176,820 units. This marks 26 consecutive months of growth as GDP continues to pick up, inflation falls and wage levels improve.
“As UK economic confidence improves still further and the market continues its upward trend, we have revised our 2014 forecast up from 2.3m to over 2.4m registrations. This represents an increase of more than 6% versus last year.”
Most of the mainstream brands saw growth; Ford retaining its leading market share with an impressive 16.5% rise, although nearest rival Vauxhall struggled, seeing its registrations drop 3.3%. It retains second place in the market but Volkswagen is now within touching distance of overtaking it after its growth almost mirrored the decline of the Griffin badge at 3%.
In the executive sector, BMW enjoyed an 18.25% growth in the number of new registrations, which reached 10,484. There was similar growth for Audi (19.7%) and Mercedes (14.5%).
Jaguar rose 12% but Land Rover trumped them all with a 25.8% rise as models such as the Range Rover Sport continued to be popular.
There was less joy for BMW’s Mini, as the normally strong seller saw registrations dip 10.7%. Buyers waiting for new models to hit showrooms is thought a likely cause.
An impressive mention must also go to the Longbridge-assembled MG. The Chinese-owned brand saw its new registrations rise 1,600%. This only equates to 221 vehicles but as the company saw only 13 vehicles registered in the same month last year then the performance is a massive step in the right direction.
The continued popularity of the MG3 supermini and the new MG6, together with an ongoing expansion of its dealer network are helping to bolster the famous octagon badge and it is confident of continued growth during the rest of the year.
The luxury sector was its usual mixed bag.
Aston Martin, struggling to overcome the bad press associated with a massive product recall earlier in the year saw its registrations nosedive – down almost 41% on the same month last year with just 58 vehicles registered.
Near rival Bentley also struggled – registrations down almost 8%, although registrations for the year are still holding up strongly, up more than 53% on the figure for 2013.
