August LV Sales Reflect Improving U.K. Economy

New-car sales rose for the 30^th straight month in the U.K. with August deliveries climbing 9.4% to 72,163 units, but the industry now expects some leveling off of the market.

The Society of Motor Manufacturers and Traders reports that after eight months, deliveries were up 10.1% to 1,532,335 units.

August is one of the year’s quietest months for new-car registrations, typically accounting for about 3% of the annual market. In comparison, September accounts for about 18% of the year’s sales.

The SMMT says increasing consumer confidence has been evident across the market, with strong growth in private, fleet and business sectors.

“The greatest surge has been in private registrations, which have grown from around 840,000 units in the year before March 2012 to 1.15 million cars in the past 12 months,” the industry group says in a statement.

Against a backdrop of improving economic conditions, SMMT says, the number of employed U.K. citizens increased by more than 1 million between first-quarter 2012 and this year’s first quarter, giving individual buyers greater confidence to commit to a new car.

“New-car registrations reached 2-1/2 years of consecutive monthly growth in August, as confident private and fleet consumers continued to snap up enticing deals on a wealth of advanced new products,” it says in a statement.

SMMT CEO Mike Hawes says the U.K.’s performance in the context of Europe is particularly impressive, with growth consistently ahead of the rest of the European Union for the past two years.

“As the U.K. market starts to find its natural level, we expect to see the growth level off during coming months,” he says.

The alternatively fueled vehicles segment outpaced the market, rising 35.9% to 1,268 units in August for a year-to-date total up 38.6% to 27,887.

The Ford Fiesta continued to lead the market, both for the month and for the year. Its 4,657 deliveries in August took its 8-month total to 83,664.

Its Ford Focus sibling sold 2,740 units for a second-place finish in August and for the year with 53,507.

The Vauxhall Corsair followed with 2,435 deliveries for the month and 50,187 for the year to date.

The commercial-vehicle market rose 11.9% to 15,053 units for the month, taking the year-to-date total up 13.0% to 214,959.

The van segment rose 22.3% to 12,652 units, while the smaller-truck market fell 22.7% to 2,401. After eight months, the van market was up 19.1% to 192,948 units, while the truck segment was off 22.0% to 22,011.

Hawes says strong van registrations led to another month of continued growth in the CV market, with demand for light CVs continuing to build.

“The truck market is still seeing the effects of a particularly strong end to 2013 ahead of the introduction of Euro 6 (emissions standards),” he says. “Stability will return to the market, although expectations for the year remain subdued.”

U.K. market leader Ford recorded its highest sales volume since 2006 with August deliveries up 22.9% year-on-year.

Ford’s August car sales rose 25.6% year-on-year to 11,231 units for an 8-month total up 5.3% to 208,432. The blue oval also continued its domination of the CV market with August sales rising 12.8% to 3,651 units for a year-to-date total improving 11.3% to 49,874.

Ford of Britain Chairman and Managing Director Mark Ovenden says the automaker is building strong sales momentum heading into September, when demand significantly increases due to the registration-plate change.

“We are delighted that private customers have driven up our share of more profitable retail sales, which account for a higher proportion of registrations in September,” he says in a statement. “In August our retail share of 16.3% was the highest for more than five years and the highest ever recorded for August.”