Fleet drives UK new car market to half-year record -SMMT

UK new car registrations grew 7% in the first half of 2015 to the highest half-year total on record.

Figures released this morning by the Society of Motor Manufacturers and Traders (SMMT) show that 

1,376,889 cars were registered between January and June – higher than the previous record of 1,376,565 in the same period in 2004.

June marked the 40^th consecutive month of growth in the market with a 12.9% increase in the month to 257,817 units. 

A significant feature of recent months has been a strong surge in demand for alternatively fuelled vehicles, and this was once again the case in June with volumes rising 70.9%.

Fleet registrations continue to drive the growth, up 18.9% year-on-year, now representing 52.8% of the market, compared to a 50.1% slice last year. Year-to-date fleet registrations are up 13.1%.

Private registrations were up 6.6% in June compared to the same month in 2014. Year-to-date, they’re up 2.1%.

Mike Hawes (pictured), SMMT chief executive, said: "It is still a great time to buy a new car in the UK, and it is encouraging to see more consumers choosing British models.

“This is important for the wider economy with 799,000 people now employed across the UK automotive sector, including retail. We anticipate a flatter second half of the year as the market finds its natural running rate."

Low interest rates and attractive finance deals, combined with a wealth of new models featuring the latest technologies, have continued to encourage consumers to purchase new cars, he said.

“It is extremely positive to see the new car market has now achieved 40 consecutive months of growth – increasing 12.9% in June,” said Sue Robinson, director of the National Franchised Dealers Association (NFDA).

“Although it is encouraging to see that the market is continuing to grow, feedback and information from the industry suggests that manufactures could be pushing the market through use of targets and incentives. 

"There is speculation that registration figures may not reflect the real number of cars actually being sold to end users.”

Richard Jones, managing director, Black Horse, said: “This month’s record results demonstrate the strength of the UK motor industry. 

"However we are likely to see a slower rate of growth over the summer months until the September plate change when the industry should fare well. 

"Factors for continued prosperity in the motor car industry include continued strong business confidence as they upgrade their fleet, rising level of household income coinciding with manufacturers and dealers offering competitively priced cars and finance offers.

“Continued low interest rates have also played a role on car sales and we would also expect to see increased use of car finance in the second half of 2015 by potential car buyers."

> AM poll on pre-registration activity

> SMMT data

> Registrations by retail, fleet and business by manufacturer on AMi (free to dealers)