U.K. Market Posts Best January Result Since 2005

The U.K. new-car market soared to a 12-year high in January as alternatively fueled vehicle deliveries grew 19.9% to a record 4.2% market share.

The Society of Motor Manufacturers and Traders says the month’s sales rose 2.9% year-on-year to 174,564 units, the best January result since 2005.

Sales of gasoline-powered light vehicles rose 8.9%, while diesel deliveries fell 4.3%.

SMMT CEO Mike Hawes says market growth is being driven by a great range of new models that are safer and cleaner than ever before.

“After record growth in 2016, some cooling is anticipated over the coming months, but provided interest rates remain low and the economy stable, the market is in a good position to withstand its short-term challenges,” Hawes says in a statement.

Light-commercial-vehicle sales rose last month, with van deliveries up 1.2% to 21,363 units and pickup demand surging 28.9% to 3,439.

Ford U.K. started the year where it left off in 2016, dominating the market. Its sales rose 7.4% in January to 30,586 units for a 15.6% market share, 7.5 percentage points ahead of its nearest rival.

Ford U.K. Chairman Andy Barratt says after its biggest January volume since 1990, the automaker is expecting another sales spike in March.

“With the vehicle excise duty – or road tax – system changing significantly from April, we anticipate another strong month as buyers move fast to avoid the tax increase,” he says.

The Ford Fiesta, the U.K.’s best-selling small car for eight years running, finished January with 8,495 sales, 3,040 units ahead of its nearest competitor.

Ford also is entering its 52nd year of CV market leadership in the U.K. January sales jumped 22.4% to 7,709 units for a market share of 36.1%.