Record-Smashing Year for U.K. Light-Vehicle Sales

New cars rolled out of U.K. showrooms at record rates last year as sales exceeded market expectations and rose 6.3% to an unprecedented 2,633,503 units.

The industry marked the end of the year with the biggest December on record as sales soared 8.4% to 180,077 units.

The Society of Motor Manufacturers and Traders says the result marked four years of consecutive growth and the market now has posted increases in all but one of the past 46 months.

The annual result broke the record set in 2003 when 2,579,050 units were sold, and it was only the fourth time the market topped 2.5 million units in a full year.

U.K. fleet sales grew 11.8% to a record 1,317,570 million units. Private-sector deliveries rose 2.5% to 1,208,812 units. The business sector was off 9.6% at 107,121 units.

There were gains for all fuel types, with gasoline-powered cars up 8.4% and diesel sales ahead 3% with equal market shares. Alternatively fueled vehicle demand soared 40.3% to 72,755 units and took a record 2.8% market share. Plug-in hybrid sales more than doubled and deliveries of all-electric vehicles increased about 50%.

SMMT CEO Mike Hawes says the new-car market defied expectations in 2015, driven by strong consumer and business confidence.

“Buyers took advantage of attractive finance deals and low inflation to secure some of the most innovative, high-tech and fuel-efficient vehicles ever produced,” Hawes says in a statement. “The past four years have seen a remarkable period of sustained growth, and the outlook remains positive with every reason to expect the market to hold broadly steady in 2016.”

The Ford Fiesta was the U.K.’s most popular model, finishing the year up 1.7% at 133,434 units and comfortably ahead of the Vauxhall Corsa’s 92,077. These were followed by the Ford Focus (83,816 units), Volkswagen Golf (73,409) and Nissan Qashqai (60,814).

Commercial Vehicles' Best Year Yet

Commercial-vehicle sales rose 16.7% to a record 423,894 units, topping the previous best mark set in 2007. The growth was driven by the van sector, up 15.6% at 371,830 units, while the smaller truck segment jumped 25.5% to 52,064.

“CV demand is a key barometer of U.K. economic confidence and the market’s strong growth in 2015 was particularly encouraging. However, with these record figures in mind, we will expect to see the market leveling off slightly in 2016.”

Ford marked its 39^th year as the U.K.’s top-selling car brand and its 50^th in the CV market after outpacing U.K. industry growth in all sectors 2015.

Ford sold 335,267 cars in the region last year, up from 326,643 in 2014. Its sales lead over its nearest rival increased 14.0% to 65,501 units. Ford’s full-year retail car sales share was 12.3%, a lead of 4.3 percentage points.

The Ford Transit helped drive Ford’s CV sales up 22.9% to 106,356 units in 2015, good for a 24.8% share rising from 23.5% in 2014. Ford’s CV sales lead of 61,041 in 2015 was up 38.8% from 2014, while its lead in U.K. total vehicle deliveries of 126,609 units increased 16.1%.

BMW had its best year ever with both BMW and Mini brands setting records. Combined sales of the two brands rose 14% year-on-year to 230,972 units.

Nissan car sales jumped 11% to a record 153,937, strengthening its position as the region’s leading Asian automotive brand. Nissan remained dominant in the all-electric EV market with sales of the Leaf up 29% year-on-year to 5,236.

Audi sales rose 5% to a best-ever 166,709 units in 2015, marking year-over-year growth for a fourth consecutive year and securing premium-sector leadership in the retail sector.

The Renault Group, comprising the Renault and Dacia car brands as well as vans, rose 17.4% to 127,343 units for a market share of 4.2%. Renault car deliveries increased 14% to 75,618 units. Three years after launching in the U.K., Dacia’s sales grew 9.9% to 26,228 units.

Jaguar Land Rover deliveries climbed 22% in 2015 to 100,787 units, driven by a combination of new and updated products. Land Rover sales rose 19% to a record 76,837 units and Jaguar improved 30% to 23,950.

Kia recorded 78,489 deliveries in 2015, which President and CEO Paul Philpott called a tumultuous year. “The second half of this year has seen cutthroat competition in showrooms due to the weak euro.

“While heavy discounts are good news for private buyers, the aftereffects include falling secondhand values and reduced profitability for dealers, which is not good for customers in the long run.”

Luxury and sports-car maker McLaren sold a record 1,654 units and now has set records every year since the company began production in 2010. The growth came as McLaren’s global retailer network grew to 80 retailers in 30 markets.