The UK see's higher sales in 2016, but will 2017 carry on the growth with so much against it ?

• Highest ever number of new cars demanded by UK customers, with 2,692,786 registered in 2016, up 2.3% on previous year.
• Wide choice of new car models and affordable finance deals drives market to new high with fifth consecutive year of growth.
• December only the second month of negative growth in 2016, as registrations dip -1.1% to 178,022 units.

The UK new car market achieved another record year in 2016, with annual registrations climbing for the fifth year in a row to almost 2.7 million, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). The market has experienced uplifts in 10 out of the last 12 months, albeit finishing with a December down slightly by -1.1% – with 178,022 new cars registered in the month.

Buyers were attracted by a range of new car models and attractive finance deals, pushing registrations up to 2,692,786 in 2016 – up 2.3% on the previous year and broadly in line with expectations. The UK new car market is one of the most diverse in the world, with some 44 brands offering nearly 400 different model types – and 2017 looks set to be another competitive year with almost 70 new launches already planned over the next 12 months. 

Fleets were responsible for most of the growth, with demand growing to a record 1.38 million units. The private market remains at a historically high level, with more than 1.2 million private buyers registering a new car in 2016, although demand did fall over the latter three quarters. The competitive range of affordable finance is a crucial factor driving private demand as consumers are able to take advantage of low interest rates and flexible payment options.

Diesel and petrol cars continued to be by far the most popular fuel types for consumers with market share at 47.7% and 49.0% respectively. However, alternatively fuelled vehicles (AFVs) experienced a strong uplift in demand, up 22.2% across the year. Plug-in hybrids and petrol electric hybrids, in particular, experienced significant growth, with demand up 41.9% and 25.1% respectively. Meanwhile, more than 10,000 motorists chose to go fully electric in 2016 – up 3.3% on 2015.

Mike Hawes, SMMT Chief Executive, said, “Despite 2016’s political and economic uncertainties, the UK’s new car market delivered another record performance as car makers offered an incredible range of innovative and high tech models. 2017 may well be more challenging as sterling depreciation raises the price of imported goods but, with interest rates still at historic lows and a range of new models arriving in 2017, there are still many reasons for consumers to consider a new car in 2017. Looking longer term, the strength of this market will rest on our ability to maintain our current trading relations and, in particular, avoid tariff barriers which could add significantly to the cost of a new car."

August see's more growth in the UK despite all the doom mongers and the withdrawal from Europe.

SMMT NEW CAR REGISTRATIONS

• UK new car registrations increase 3.3% in August to 81,640 units, with YTD performance steady at 1.68m.
• Fleet sector drives market, with demand in the month growing 7.7% as private registrations fall -0.2%.
• Registrations of alternatively fuelled vehicles up almost a third (30.8%).

The UK new car market achieved modest growth in August, as registrations rose 3.3% against the same month last year, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). 81,640 new cars were registered in the month, with year-to-date performance remaining positive, up 2.8% to 1.68 million units.

The fleet sector drove the growth with demand, buoyed by attractive finance deals and discounts, rising 7.7% to 43,267, while private registrations fell slightly by -0.2%. Diesel demand also fell marginally by -0.2%, with petrol registrations edging ahead 5.3% and alternatively fuelled vehicles (AFV) seeing significant growth of 30.8%. Almost 54,000 AFVs have been registered so far in 2016, compared with just over 44,000 last year.

Mike Hawes, SMMT Chief Executive, said, “August is traditionally one of the quietest months as consumers look ahead to the September plate change, so growth, albeit small, is good news. With showrooms full of exciting models featuring the very latest technology and a raft of affordable finance options, it still makes economic sense to consider buying a new car. The key to maintaining this strong market is consumer confidence for which we look to government to deliver the conditions for economic growth.”

FEBRUARY FIGURES - SMMT releases data for UK new car sales.

• February new car registrations rise 3.0% to 68,736 units.
• UK new car market achieves 24 consecutive months of growth, increasing 17.4% over the period.
• Rising GDP and growing car registrations signal increasing consumer confidence.
• Automotive retailers look forward to March results as expectations rise for strong 14-plate performance.

"The 3% rise in February new car registrations marks two full years of continuous month-on-month growth; a real endorsement of consumer confidence and the attractiveness of the new car market," said Mike Hawes, SMMT Chief Executive. "While February is typically a quieter month ahead of the March registration plate change, we expect the arrival of the new 14-plate and increasing economic confidence to maintain a steady rate of growth."

New car registrations (rolling-year total by quarter) and GDP growth (year-on-year quarterly): Q1 2011 to Q4 2013 

Note: GDP is real GDP chained volume measure

About SMMT and UK the automotive industry

The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media. 

The automotive industry is a vital part of the UK economy accounting for £59 billion turnover and £12 billion value added. With more than 700,000 jobs dependent on the industry, it accounts for 10% of total UK exports and invests £1.7 billion each year in automotive R&D. The industry plays an important role in the UK’s trade balance, with vehicle manufacturers exporting around 80% of production. More than 30 manufacturersbuild in excess of 70 models of vehicle in the UK supported by around 2,500 component providers and some of the world's most skilled engineers.

Broadcasters: SMMT has an ISDN studio and access to expert spokespeople, case studies and regional representatives.

February			Total		Diesel		Petrol		AFV	Private		Fleet		Business
2014			68,736		33,094		34,430		1,212	29,887		37,029		1,820
2013			66,749		32,327		33,588		834	29,277		35,759		1,713
% change			3.0%		2.4%		2.5%		45.3%	2.1%		3.6%		6.2%
Mkt share '14					48.1%		50.1%		1.8%	43.5%		53.9%		2.6%
Mkt share '13					48.4%		50.3%		1.2%	43.9%		53.6%		2.6%
Year-to-date			Total		Diesel		Petrol		AFV	Private		Fleet		Business
2014			223,298		112,553		106,674		4,071	101,298		112,238		9,762
2013			210,392		105,166		102,105		3,121	90,338		110,976		9,078
% change			6.1%		7.0%		4.5%		30.4%	12.1%		1.1%		7.5%
Mkt share '14					50.4%		47.8%		1.8%	45.4%		50.3%		4.4%
Mkt share '13					50.0%		48.5%		1.5%	42.9%		52.7%		4.3%
Best sellers		February									Year-to-date
	1	Ford Fiesta				4,415			1		Ford Fiesta		13,487
	2	Vauxhall Corsa				3,138			2		Ford Focus		7,899
	3	Vauxhall Astra				2,707			3		Vauxhall Corsa		7,608
	4	Ford Focus				2,566			4		Vauxhall Astra		6,106
	5	VW Golf				1,628			5		VW Golf		6,018
	6	VW Polo				1,450			6		VW Polo		5,325
	7	Mercedes-Benz C-Class				1,231			7		Audi A3		4,278
	8	Vauxhall Insignia				1,164			8		Nissan Qashqai		4,079
	9	Audi A3				1,148			9		Nissan Juke		3,733
	10	BMW 3 Series				1,085			10		Fiat 500		3,549

Percentage change in new car registrations by segment, February 2012 to February 2014(rolling year)

 

• The new car market grew 17.4% between February 2012 (1.94 million registrations) and February 2014 (2.28 million)*.
• While the Supermini segment recorded solid growth over the period, volumes in the Mini segment almost doubled, helped by the introduction of new models. The small car market has been supported by motorists looking to reduce running costs, as well as increased diversification of products and advances in levels of comfort and safety.
• Dual Purpose vehicles (now the third largest segment) and MPVs recorded above-average growth over the past two years with space, style and versatility attracting consumers.
• *Volumes relate to rolling year.