South: UK new car market sustains growth momentum, says SMMT
The Society of Motor Manufacturers and Traders (SMMT) has announced that, compared with May 2012, UK new car registrations rose 11% or 17,823 units in the month to 180,111 units. The 2013 May market was the highest May volume in six years, just 3% below the 2007 level.
The new car market has now grown for 15 successive months, largely in line with recovery in the private market, where demand grew 20.9% in May, and pushed volumes back above 2007 pre-recession levels. Private registrations over the first five months of the year have risen 16.2%. Fleet and business volumes also improved.
According to SMMT, this growth reflects a combination of factors, which may include: consumers returning to the new car market after delaying regular replacement cycles, motorists replacing vehicles bought under the Scrappage Incentive Scheme, motorists switching to more efficient vehicles in every class and attractive offers catching the attention of buyers with funds and access to finance. A switch from used to new may also be occurring, as the recession-induced dip in new car sales restricts the supply of used cars.
Total new car registrations for the year-to-date remain 9.2% off 2007 volumes, but growing consumer confidence has meant that private demand for the same period is just 2% off levels posted in 2007.
Mini segment cars have seen the strongest growth so far in 2013, although most segments have posted increases.
Small cars tend to be petrol-fuelled and petrol-powered cars have seen the strongest growth so far in 2013, up 14%.
The Ford Fiesta was the best selling model in both the month and year-to-date.
The automotive industry is a vital part of the UK economy accounting for £55 billion turnover and £12b value added. With more than 700,000 jobs dependent on the industry, it accounts for 10% of total UK exports and invests £1.3b each year in automotive R&D.
SMMT supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.
