U.K. Car Sales Up for 11th Straight Month in January

The U.K. new-car market starts the year with January sales up a healthy 11.5% to 143,643 units.

It was the third month of double-digit growth in the past four months and the 11th successive monthly rise.

Releasing the figures, the Society of Motor Manufacturers and Traders raises its full-year sales forecast for 2013 and 2014, citing the better-than-expected growth in 2012.

The car market now is expected to rise 0.6% to 2.06 million units this year and 2.6% to 2.1 million units in 2014.

SMMT says the growth is set against a challenging economic backdrop, suggesting market-specific factors are helping drive demand, such as consumers who have delayed purchases being tempted by deals and offers.

“Cost-conscious and environmentally minded motorists were attracted to the advances in fuel efficiency across all ranges and new alternative propulsion systems that became available during the last 12 months,” SMMT says in a statement.

These include diesel-electric hybrids, plug-in hybrids and extended-range electric vehicles.

Registrations of all fuel types rose in January. Gasoline-powered cars saw their market share rise, in line with increased volumes by private buyers and of smaller cars, both of which tend toward gasoline engines.

The Ford Fiesta was the January sales leader with deliveries of 7,906 units, ahead of its sibling rival Ford Focus (5,794) and the Opel Astra (5,462).

Commercial-vehicle registrations rose 5.6% during the month to 18,931 units. Van deliveries grew 11.9% year-on-year to 16,049, but trucks dropped 19.6% to 2,882.

SMMT Commercial Vehicle Manager Nigel Base says 2013 is set to be a telling year for the CV market, with van registrations off to a good start and the truck sector's performance under close scrutiny ahead of the introduction of Euro 6 emissions standards from January 2014.

“SMMT forecasts that the light-commercial-vehicle sector will grow almost 5% over the year, with new models and greater business confidence driving the market,” Base says.

Ford says it is maintaining its overall sales lead in the U.K. by “driving up its share of more profitable retail sales, while taking out marginal fleet business by lowering sales to daily rental fleets,” Ford Britain Managing Director Mark Ovenden says in a statement.

The auto maker’s top-selling car range took a 13.7% market share in January with deliveries of 19,640 units. Ford also set the pace in CV sales with a 14.2% jump to 4,393.