Fleet and business new car registrations continue to grow

New cars registered to fleet and business grew 5% in July compared to the same month last year, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).

The data shows there were 100,920 fleet and business registrations out of a total of 178,420, equating to a 56.5% market share.  

So far, overall registrations in 2015 have risen 6.5% to surpass 1.5 million, with fleet and business accounting for 840,830 units – 54% of the market.

The UK new car market has seen consistent, strong growth since early 2012, with July marking the 41st consecutive month of increases.

While the first six months of 2015 represented an all-time record high for registrations, the more modest increase in July is suggestive of a more stable second half of the year as demand levels.

Mike Hawes, SMMT chief executive, said: "While more moderate than in recent months, July’s rise in new car registrations is good news, and indicative of what we expect for the remainder of 2015. With demand having reached a record high in the first half of the year, we anticipate more stable growth in the coming months."

The top-selling segments so far this year have been Supermini, Lower Medium (small family cars) and Dual Purpose (SUVs and crossovers). Volume growth in all three segments reflects a shift in buying habits over the past decade, with the Supermini and Dual Purpose segments enjoying the biggest gains.

In particular, demand for Superminis has grown 22.7% since 2005 – a result of consumers downsizing to smaller cars that offer significantly improved refinement, comfort and specification than their equivalents a decade ago.

The market for Dual Purpose vehicles, meanwhile, has seen a staggering 88.5% leap over the past decade as manufacturers have introduced new models to cater for buyers seeking more versatility.

John Leech, head of automotive at KPMG, said: “The strength of the Sterling and improving consumer confidence makes the UK car market attractive to vehicle manufacturers, but the recovering Eurozone markets means that we now forecast muted growth in the second half of 2015. 

“It seems more likely that the UK market will undershoot the all-time sales record of 2.58m vehicles set in 2003. We now expect sales of 2.56m in 2015.”