Private Buyers Push U.K. New-Car Sales Past 2 Million Mark in 2012

U.K. new-car sales pass the 2 million-unit mark in 2012 for a 4-year high, up 5.3% to 2,044,609 units, helped by a 3.7% gain in December to 123,557 deliveries.

The year-on-year sales growth was the best since 2001 and only the second increase since the 2008 global recession. It also was up 1.6% from the Society of Motor Manufacturers and Traders’ 2.01 million-unit forecast set in October and 6.5% ahead the forecast made at the start of 2012.

The SMMT credits last year’s success to a surge in private demand, up 12.9% to 106,346 units, but says the new-car market still fell 14.9%, or about 360,000 units, below the 2007 pre-recession level of 2.4 million.

Regular replacement cycles, offers and incentives and some buyers shifting to used cars likely contributed to the upturn, the industry group says.

“Boosted by strong consumer demand, the market grew at its fastest rate for 11 years with innovative, fuel-efficient cars keeping buyers in showrooms,” SMMT CEO Paul Everitt says in a statement.

“Looking ahead to 2013, we anticipate the market will hold firm, with manufacturers and dealers working hard to deliver quality and value to motorists.”

However, SMMT expects the 2013 market to be challenging and says it will wait to issue its first sales forecast until later this month.

Diesel-car deliveries rose 5.8% to 1,038,679 units in 2012 for a record 50.8% market share, a slight rise from 2011’s 50.6%.

A tough year for commercial vehicles ended with December sales down 15.8% to 3,579 units, leaving a full-year result off 5.9% to 285,343. Truck deliveries climbed 6.4% to 45,702 units, but this was more than offset by a 7.9% decline van sales to 239,641.

Everitt says 2012 was a challenging year for the U.K. commercial-vehicle market as business confidence wavered. “We look forward to 2013 being a better year for the commercial-vehicle market with a host of new products and innovative technologies boosting registrations.”

The SMMT says the average new-car carbon-dioxide emissions in 2012 fell to a new low of 133.1 g/km, down 22.7% from a decade ago.

The Ford Focus was December’s best-selling car with 5,265 units, ahead of the Vauxhall Astra (5,112) and Ford Fiesta (4,977).

For the full year, the Fiesta was the runaway winner with 109,265 units, retaining the position held since 2009 and comfortably ahead of the Vauxhall Corsa (89,434) and Focus (83,115).

Sales of U.K.-built cars jumped 11.1% for the year, boosting their share to 13.5%.

Registrations of alternative-powered cars rose 9.4% to 27,841 units for a record 1.4% share. The Toyota Prius plug-in was the best-selling hybrid with 470 deliveries.

Toyota’s total car and CV sales rose 12.6% to 92,318 units, with hybrids accounting for almost 14% of the total.

Ford extended its U.K. market lead to 36 consecutive years for passenger vehicles, with sales up 6.0% to 281,917 units. The Ford Transit van has led the CV sector since its launch in 1965, and the auto maker’s CV market leadership remained unchallenged last year with a 21.6% share.

The BMW saw group sales grow 7.2% in 2012 to a record 178,854 units. The BMW brand rose 9.3% to a record 127,530. Mini was up 2.5% to 51,324, its best result since the vehicle’s U.K. launch in July 2001.

“Although the 2013 economic outlook is challenging, we remain cautiously optimistic,” Managing Director Tim Abbott says in a statement.

Nissan saw a record year in the U.K., jumping 8.3% to 105,834 units, driven by the Qashqai cross/utility vehicle, up 15.9% to 45,675, and the boxy Juke car, up 31.7% to 28,862.

Kia sales climbed 24.3% to 66,629 units, and plans are to boost this to 70,000 units in 2013. The Korean auto maker will move 2.5 miles (4.0 km) to a new head office in Walton, Surrey, in the fourth quarter, more than doubling its current space in Weybridge.

Kia U.K. President and CEO Paul Philpott says the subsidiary consistently set sales records throughout 2012, with almost every month beating previous record highs. “This is an excellent performance that matches the challenging targets we have set ourselves as we seek to build Kia into a 100,000-unit-a-year brand in the U.K.”

Kia’s 2012 deliveries were led by the cee’d with 15,380 units, followed by the Sportage with 14,964 and the Picanto with about 14,500.

Jaguar Land Rover sales last year jumped 19.2% to 68,586 units, with both premium brands retailing more vehicles than in 2011. Land Rover says it registered its best-ever results in the U.K. in 2012, up almost 25% to 54,480 for a 27% share of its segment.

Deliveries were driven by the first full-year of sales of the Range Rover Evoque, with 18,119 units, making it Land Rover’s best-selling vehicle in this market.

Jaguar sales grew 2.4% to 14,105 in 2012, despite what the auto maker says were increasingly competitive market conditions.

Suzuki enjoyed a record year, up 24% to 24,880 units, making it the second-fastest growing franchise in the U.K. The Japanese auto maker says its 2013 sales target is 30,000 units for a 1.5% share.