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UK new car market up in February, says SMMT

Date: 05 March 2015   |   Author: Daniel Puddicombe

The UK's new car market grew by 12% in February with 76,958 cars registered, according to the latest Society of Motor Manufacturer and Traders figures.

Fleet buyers drove most of the increase, with registrations up by 19.9% in February.

The SMMT said it was the 36th consecutive month of growth. Year-to-date the market was up by 8.3%

The Ford Fiesta was the most popular vehicle in February, with 4096 registrations. Second was the Volkswagen Golf with 3177 registrations and Vauxhall's Corsa rounded out the top three with 2830 registrations.

The Fiesta is also the most popular car in the year to date with 12,770 registrations, followed by the Vauxhall Corsa on 9709 registrations.

"Registrations of fleet and business cars have outpaced the private market in February, reflecting the increased business confidence across the UK," said Mike Hawes, SMMT chief executive. "With most fleet car buyers on a three-year replacement cycle, many of those cars purchased at the beginning of the current growth period are now due for replacement."

"Over the course of 2015, however, we are expecting a more stable market to emerge given there has already been an extended period of consistent growth."

Industry reaction

Richard Parkin, automotive industry consultant at Grant Thornton UK, said: "These figures are further evidence of a solid recovery across the UK economy.

"The fact that consumers, as well as businesses, have continued to invest in vehicles is indicative of their confidence in the economy over the mid to longer term. However, a looming general election - one of the most unpredictable in modern memory - along with continued uncertainty across the Eurozone, may well foster uncertainty in the market, and this may dampen demand.

"We can expect the sales records to continue for a few more months, but unless manufacturers begin to scale back their sales volume ambitions, the bubble may burst in the not so distant future."

Parkin is expecting a tempering in retail and fleet car registrations later in the year.

He said: "Plant production volumes for 2015 are, for the most part, set in stone - the cars will be built, it's just a case of where they are sold, and high UK sales (>2.5m units) have already been factored in to these calculations."

Richard Lowe, head of retail & wholesale at Barclays said: "The UK new car market is still motoring forward, with the business and fleet side racing ahead with manufacturers continuing to offer attractive finance packages to fleet buyers in the UK. All eyes are now on March's plate change, and whether 2014's stellar performance can be beaten."

 



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