U.K. New-Car Sales Up Fifth Straight Year in 2016

The U.K. new-car market achieved a record 2016, with sales rising for the fifth year in a row, up 2.3% to 2,692,786 units, the Society of Motor Manufacturers and Traders says.

The market saw increases in 10 of the 12 months, finishing with a December result down 1.1% year-over-year at 178,022 units.

SMMT CEO Mike Hawes says buyers were attracted by a range of new models and special financing deals, leaving the year-end total broadly in line with expectations.

He calls the region’s new-car market one of the most diverse in the world, with 44 brands offering nearly 400 different model types – and 2017 looks to be even more competitive, with almost 70 new launches planned over the next 12 months.

SMMT says competitive financing offers were a crucial factor driving private demand as consumers took advantage of low interest rates and flexible payment options.

Sales of 1,285,160 diesel units (47.7%) and 1,318,707 powered by gasoline (49.0%) remained by far the most popular fuel types, but alternatively fueled vehicles saw a 22.2% increase in demand to 88,919 units.

Sales of plug-in hybrids, up 41.9%, and gasoline-electric hybrids, up 25.1%, grew significantly. More than 10,000 all-electric vehicles were sold, up 3.3% on 2015.

Despite 2016’s political and economic uncertainties, Hawes says, the U.K.’s new-car market delivered another record performance.

“Looking longer term, the strength of this market will rest on our ability to maintain our current trading relations and, in particular, avoid tariff barriers which could add significantly to the cost of a new car,” he says.

Ford’s Fiesta was the top-selling model for the eighth straight year with 120,525 units, well ahead of the Vauxhall Corsa (77,110) and Ford Focus (70,545). Volkswagen’s Golf ended the year with 69,492 deliveries, ahead of the Nissan Qashqai’s 62,692.

The SMMT says new light-commercial-vehicle sales rose 1.0% to a record 375,687 units, marking four years of consecutive growth.

Pickups were the biggest success story of the year, with deliveries climbing 17.6% to 47,715 units. Heavy van sales rose 4.8% to 232,948 units.

Ford U.K. set a CV sales record in 2016 as deliveries jumped 14.6% to 118,000 units and giving the automaker 40 consecutive years of car-sales leadership and 51 as the region’s top CV seller.

Ford sold 318,316 cars in the U.K. last year. This was down from 335,267 in 2015, but it increased its sales lead over its nearest rival 2.8%, to 67,361.

Ford SUVs also performed well, with Kuga sales up 7.7% to 32,936 units. EcoSport deliveries rose 35.8% to a record 15,368 units.

Ford Transit has led the U.K. CV sector from its launch in 1965 and Ford’s CV range secured a 30.6% market share last year, up from 24.8% in 2015.  Ford’s CV sales lead of 71,898 units in 2016 increased 38.8% compared with 2015.

The blue oval’s CVs led all their respective segments for the year, including the Ranger, up 65% to a record 13,292 units.

Vauxhall Commercial Vehicles claimed success, saying it sold more vans to retail customers in 2016 than any other manufacturer.

The Luton-based General Motors subsidiary sold 12,569 vehicles to small businesses for a 15.9% market share. The Vivaro medium van with more than 22,000 units also was a best-seller at retail.

Renault UK also was celebrating growth with sales up 12.5% to a 5-year high of 85,102 car units. Renault van sales rose 1.5% to a record 25,842 units.

Groupe Renault, comprising Renault cars and vans and the Dacia brand, saw sales up 8% to 137,506 vehicles for a 4.5% market share. It laid claim to being the U.K.’s fastest-growing volume franchise, outperforming the overall market for a fourth straight year.

Kia U.K. also set a record as its sales rose 13.8% to 89,363 units, beating the old mark set in 2015. Kia’s sales split almost equally between retail and fleet.

Volvo U.K. finished the year with its highest sales figures in a quarter-century, as deliveries rose 7% to 46,696 units. The V40/V40 Cross Country was the brand’s No.1 model with 16,491 sales, followed by the XC60 (16,038) and the new XC90 (5,801).

The XC90 result was significant, as it is the first model built on Volvo’s all-new SPA platform and powered exclusively by its groundbreaking Drive-E powertrains.

Suzuki sold a record 38,190 units, topping its 2015 tally by more than 3,700 and almost doubling its U.K. sales volume in just five years. Its Vitara compact SUV led the way with 11,500 deliveries.

In the heady atmosphere of the luxury sports and supercar market, McLaren was popping champagne corks as it celebrated sales of 3,286 units, a 99.3% year-on-year improvement.