U.K. New-Car Sales Rise for 24th Consecutive Month

The U.K. new-car market marked 24 straight months of growth as February deliveries rose 3.0% to 68,736 units.

The Society of Motor Manufacturers and Traders says deliveries increased 17.4% over those 24 months. The result left the year-to-date total up 6.1% to 223,298 units.

SMMT CEO Mike Hawes says a rising gross domestic product and growing consumer demand is raising dealer expectations for a strong 2014 performance.

The SMMT figures show sales in England rose 3.0% to 56,959 units and in Northern Ireland by 10.5% to 4,419. Scottish deliveries eased 1.1% to 5,009 units, while deliveries in Wales dropped 4.6% to 1,941.

Hawes says the growth in February, typically a quiet month ahead of the March registration- plate change, is “a real endorsement of consumer confidence and the attractiveness of the new- car market.”

The SMMT says that while the supermini segment recorded solid growth over the past 24 months, volumes in the minicar segment almost doubled, helped by the introduction of new models. The small-car market has been supported by motorists looking to reduce running costs, as well as increased diversification of products and advances in levels of comfort and safety.

The Ford Fiesta led sales for February with 4,415 units and year-to-date with 13,487.

The Vauxhall Corsa followed with 3,138 deliveries and held third place after two months with 7,608. Vauxhall Astra sales ranked third last month with 2,707 units and were in fourth place year-to-date at 6,106.

Ford’s Focus (2,566) eased to fourth in February, but remained in second place after two months with 7,899.

SMMT says commercial-vehicle sales grew 17.5% in February to 13,320 units. Van deliveries drove the CV growth, rising 28.2% to 11,731, but the Euro-6-induced dip in truck volumes continued with sales off 27.3% to 1,589.

The result put the year-to-date total up 9.9% to 33,259 units, with the van segment advancing 18.5% to 29,853 and the small-truck segment tumbling 32.8% to 3,406.

Ford stretched its market lead overall, topping both the car and CV segments, as year-to-date deliveries grew 7.6% to 39,442 units.

Meantime, the Finance and Leasing Assn. reports a 25% jump year-on-year in the number of cars bought by consumers using dealer financing in January.

This left FLA members’ penetration of the private new-car market in the 12 months to January at 74.5%, equaling the previous peak reached in August 2013.

FLA Head of Research and Chief Economist Geraldine Kilkelly says the figures reflect a recent survey that found motor-finance providers remain optimistic about growth in 2014.

“The majority of respondents expect retail motor finance for new and used cars to grow by up to 10% over the next 12 months,” Kilkelly says.