Figures released today by the SMMT show registrations of new cars in the UK grew 7.0% in the first half of 2015 to the highest half-year total on record.

1,376,889 cars were registered between January and June – higher than the previous record of 1,376,565 in the same period in 2004. Buyers’ appetite for British-built cars is on the increase, meanwhile, with 13.9% (around one in six) choosing a UK-manufactured vehicle so far this year – the highest level in five years.

June marked the 40th consecutive month of growth in the market with a 12.9% increase in the month to 257,817 units. 

A significant feature of recent months has been a strong surge in demand for alternatively fuelled vehicles, and this was once again the case in June with volumes rising 70.9%. Fleet registrations continue to drive the growth, although registrations to private customers remain strong.

Mike Hawes, SMMT chief executive, said, "It is still a great time to buy a new car in the UK, and it is encouraging to see more consumers choosing British models. This is important for the wider economy with 799,000 people now employed across the UK automotive sector, including retail. We anticipate a flatter second half of the year as the market finds its natural running rate."

June Total Diesel Petrol AFV Fleet Business
             
2015 257,817 124,251 126,456 7,110 136,125 13,323
2014 228,291 117,411 106,720 4,160 114,453 12,187
% change 12.9% 5.8% 18.5% 70.9% 18.9% 9.3%
Mkt share '15   48.2% 49.0% 2.8% 52.8% 5.2%
Mkt share '14   51.4% 46.7% 1.8% 50.1% 5.3%

 

David Raistrick, UK automotive leader at Deloitte said: “With there being little sign that the UK will see a significant interest rate rise in the near future, the anticipated slow-down in the rate of new car sales is likely to be gradual. After all, by taking advantage of the attractively benign finance market, car buyers may still be persuaded to change their vehicles earlier than they would otherwise do.

“As last month’s figures showed a decline in new car sales for both Germany and France, two of the largest European markets, motor manufacturers will be hoping that the UK maintains its current sales volumes. They will also hope that government support in Spain for the automotive market continues through the extended “scrappage” schemes. 

"The French and German markets appear to have reacted more immediately to the problems being experienced in the Eurozone. In comparison, some of the countries which have experienced difficulties over the past few years – Italy, Ireland and Portugal among them – are showing strong growth this year.” 

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