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Statistics released by the SMMT last week showed that new car registrations increased by 7.6 per cent in January to 154,562 units.
Despite the increase in January which contributes to the consistent growth seen in the car market in the UK, the SMMT is still forecasting that 2014 will see more moderate growth in comparison to 2013.
Private registrations came out top in the SMMT’s latest figures with a 17 per cent increase to 71,417 units registered.
Mike Hawes, SMMT chief executive, said: “The new car market ended 2013 on a high, so it is encouraging to see the January market start the year strongly.
“As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars. Looking ahead, the UK automotive industry expects to see moderate, sustainable growth in 2014.”
Chairman of Perrys, Ken Savage, was interviewed by BBC Radio 4 in relation to the growth of the car market in the UK and its link to payment protection insurance payouts.
He said: “There isn’t one single thing that creates the demand for new and used cars. But people are getting PPI payments- an average of £3,000 up to £10,000. Giving an additional income to provide a deposit for a car.”
The growth in registrations of alternatively fuelled vehicles (AFVs) increased significantly in January with a growth of 25 per cent and an improved overall share of 1.8 per cent of volumes. Petrol-electric hybrids monopolised almost all of the AFV registrations in 2008, but with the increased availability of pure electric, plug-in and diesel-electric vehicles, the AFV market has gained a better stance.
The new government/industry ‘Go Ultra Low’ campaign to promote the advantages of ultra-low emission vehicles will provide a further stimulus to the market segment along with the Plug-In Car Grant of up to £5,000 from the government which continues to provide an incentive to buyers of pure electric and plug-in models.
To view the full SMMT new car registration report for January 2014 click here.