NEW car fleet sales in 2001 have been undermined by uncertainty prompting one of the largest year-on-year monthly registration drops in history - 13.8%. Poor fleet sales in January were offset by a massive 28% rise in private sales as a result of strong competition with lower prices, better-specified cars and longer warranties.

As a result, despite fleet sales last month totalling 82,982, total new car sales last month were up 1.55% to 187,908, according to

Society of Motor Manufacturers and Traders figures.

In the fleet sector the top five manufacturers all reported year-on-year sales declines with Ford down 17.9% year-on-year although it retained its number one fleet manufacturer position and in the Focus had the best-selling fleet car. Elsewhere Vauxhall saw sales drop 20.8% year-on-year with Vectra sales suffering along with Corsa although Astra sales increased; Peugeot recorded a 16.6% drop, Renault sales were down 25.4% and Volkswagen's fleet registrations were 4.5% down.

Outside of the top five fleet manufacturers there were major winners with Fiat fleet business up 21.9%, Toyota increasing sales by 29.7%, Nissan business up a whopping 121.5% and Citroen up 56.3%. A Citroen spokesman said last month's sales built on last year's success which saw fleet sales increase by almost 40% year-on-year, and pointed to cars such as the Xsara Picasso which have helped raise the profile of the brand.

The fleet market's share of the total new car market dropped from 52.02% in January last year to 44.16% last month. And, as we report on page 1 this week, the reasons were varied. However, the SMMT believes new car sales will remain buoyant throughout this year and is predicting a market little changed from last year at around 2.25 million units.

But Jim O'Donnell, managing director of BMW (GB), believes that figure is cautious and predicts at least a further 100,000 sales prompting a record UK market. And, while fleet sales have kicked off the year badly O'Donnell believes that could be due to user-choosers opting out of company cars, taking a cash allowance and moving to PCP-style products.

'Such moves are deflating the traditional fleet market but these cars are really company cars and should be counted as such although they are being funded a different way,' said O'Donnell.