U.K. January Sales Virtually Flat

New-car sales in the U.K. inched up 0.03% year-on-year to 128,853 units in January.

Society of Motor Manufacturers and Traders CEO Paul Everitt calls the marginal rise a welcome sign of stability in uncertain economic times.

The organization revised its full-year forecast for the 2012 new-car market downward to 1.92 million units, a 1.1% drop from year-ago sales of 1.94 million.

SMMT says the economic outlook remains weak and continues to make the new-car market challenging, yet expects it to grow to 1.98 million units in 2013.

Everitt says 2012 is set to be an exciting year, with record numbers of new models coming to market featuring innovative technology that will save fuel, enhance motorists’ comfort and further increase safety and security.

“However, to maintain market stability, government must act decisively and deliver much-needed confidence to businesses and consumers,” he says in a statement.

Sales of diesel models climbed 6.3% in January to 69,180 units to capture 53.7% of the market, up from prior-year’s 50.5%. Deliveries of cars powered by alternative fuels cars grew 17.7% to 2,119 for a 1.6% share, up from 1.4% a year ago.

January’s performance was boosted by the private market, as sales rose 2.7% to 52,960 units and the fleet sector edged up 0.3% to 70,649.

Ford started the year with the top two sellers as the Fiesta jumped 33.9% to 7,824 units and the Focus delivered 5,643. The VW Golf was a distant third with 3,992.

Market leader Ford’s total car sales in January were up 2% to 20,061 units from prior-year’s 19,657, raising its share 0.3 percentage points to 15.6%.

Mark Ovenden, managing director-Ford Britain, says the auto maker’s range has benefited from the introductions of the new Ranger pickup and the 123-hp EcoBoost engine in the Focus.

Ford commercial-vehicle sales fell to 3,845 units in January from 4,675 a year earlier.

Everitt says the CV market saw mixed results last month, with strong truck sales outweighed by fewer van deliveries. Trucks jumped 45.4% year-on-year to 3,586 units and vans slipped 16.4% to 14,338, well below SMMT’s forecast of 17,000.

The results left the combined CV market down 8.6% to 17,924 units in January.

“Over the course of 2012, SMMT expects the CV market to be steady, ending the year marginally up on 2011,” Everitt says. “If the year pans out as expected, van registrations will be stable in very weak economic and uneasy financial settings.

“Government support for business will be key to maintaining market stability. If confidence can be maintained through the year, we should see growth in 2013.”

Mercedes-Benz U.K. reported record January sales of 6,249 units, up 20% from year-ago. The auto maker says deliveries to private buyers climbed 20.5% to 1,571, the first significant increase since the start of 2011.

Kia got off to a strong start by outperforming the market with 4,282 deliveries, up 38% from year-ago.

Kia Managing Director Michael Cole in a statement credits releasing all-new A-, B- and D-segment cars in less than eight months’ time and predicts 2012 will be the auto maker’s best-ever year in the U.K.