Fleet new car registrations in May were up 3% year-on-year, with 106,865 units registered to fleet and business during the month, equating to 53.7% of overall sales.
The figures released today by the Society of Motor Manufacturers and Traders (SMMT) show that fleet and business registrations are now 10% up on where they were this time last year.
They account for 590,340 registrations, compared to the 536,876 cars registered during the same period last year, and a 52.7% share of overall registrations, which stands at 1,119,072 units.
The SMMT also reveal a strong surge in demand for ultra-low emission vehicles (ULEVs), with 11,842 ULEVs registered between January and May – a four-fold rise on the 2,838 registrations in the same period last year.
The growth says the SMMT is further evidence of UK car buyers’ increasing awareness of the significant benefits of driving a ULEV, as they look to reduce their running costs and environmental impact. Motorists can now choose from a diverse range of around 20 ULEVs, compared to just six in 2011.
Mike Hawes, SMMT chief executive, said, "The remarkable growth in demand for plug-in vehicles is expected to continue as the range of ultra-low emission vehicles on sale increases. Meanwhile, we anticipate a natural levelling out of the overall new car market throughout the remainder of 2015.”
The rise in overall new car registrations, meanwhile, marks the 39th consecutive month of growth in the market.
David Raistrick, UK automotive leader at Deloitte, said: “The growth in fleet sales has been key to the UK new car market maintaining this upward trend, as there has been a distinct slowing in the increase in private sales, compared to 2014.
“May’s results showed that the increase in new cars sold to private buyers over the first five months rose by only c6,600, compared to a rise of c57,700 for the first five months of last year. Yet growth in fleet sales has increased from 40,000 cars to 58,000 cars in the same period.
“This could be the first real indication that the consumer led growth, which kick-started the UK new car market nearly three years ago, is levelling off and is not sustainable.
“With the UK car parc standing at around 32.6 million cars on the road, this represents over one car for every two people. This figure suggests that there is little prospect of the UK car parc increasing significantly enough to allow for the continued rate of growth in new car sales, whilst also supporting the used car market and underpinning residual values.”
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Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
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