December car registrations

Fleet sales helped boost the new car market in the UK in 2010, helping total registrations finish the year ahead of 2009.

According to figures published by the Society of Motor Manufacturers and Traders, the fleet market was up by more than 10% in 2010 compared with the previous year, while business registrations - sales to smaller fleets and organisations that take a smaller share of the market - were up by almost 50%.

Overall volumes up 19.9% in the first half of the year, but falling 13.8% in the second half, a reflection of the removal of the Scrappage Incentive Scheme in March 2010.

More than 100,000 cars were registered through the scheme in 2010, around 5% of the total market. While up 1.8% on 2009, the 2010 market was still the second lowest in the past decade and almost 375,000 units short of the 2007 levels.

Total registrations fell by 18% in December, with the market a little below expectations. If scrappage volumes were removed completely from the 2009 December tally, then the 2010 December figure would have been up almost 6,000 units or 4.8%.

Private registrations fell below one million units for only the second time in the past decade, dropping by 5.6% over the full year and by 37.5% in December. Fleet volumes are expected to sustain the market in 2011, while private demand will fall further - in part reflecting the loss of the scrappage scheme.

UK-built cars outperformed the market, up 17.4% over year-to-date and 7.4% in December. The market share was the highest since 2005.

Diesel penetration also rose to a record 46.1%, in part helped by growth of MPV and dual purpose (SUV) segments, which have a high diesel penetration, as well as the slowdown in petrol car sales post scrappage.

The Ford Fiesta was the best selling new car for a second successive year in 2010 and Ford was again the bestselling brand, whilst in December Vauxhall was the top brand and the Astra was the best selling model.

"2010 was a year of recovery for the motor industry with new car registrations up 1.8% on 2009," said Paul Everitt, SMMT chief executive.

"Economic conditions remain extremely challenging, but industry expects demand to strengthen in the second half of the year. Competition in the retail sector will intensify as the industry seeks to re-balance demand across its new and used car and service and repair business. UK motor manufacturing recovered particularly well in 2010 and the outlook is for further steady growth this year."