U.K. Market Off to Fast Start

New passenger-vehicle sales in the U.K. in January continued where they left off at the end of 2013: on the rise.

Deliveries totaled 154,562 units in the month, up 7.6% from year-ago.

The Society of Motor Manufacturers and Traders says buyers are being drawn by fuel efficiency, with sales of alternatively fueled vehicles up 25% year-on-year to 2,859 units.

“The new-car market ended 2013 on a high, so it is encouraging to see the January market start the year strongly,” SMMT CEO Mike Hawes says in a statement.

“As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars.

“The U.K. automotive industry expects to see moderate, sustainable growth in 2014.”

The January gain came mostly from private buyers, with deliveries rising 17.0% to 71,417 units. Business-sector purchases jumped 7.7% to 7,925 units, while less-profitable fleet purchases were virtually unchanged at 75,210 units.

The Ford Fiesta topped sales with 9,072 units, ahead of the Ford Focus (5,333) and Vauxhall Corsa (4,470).

The SMMT says alternatively fueled vehicles outperformed the overall market in January, noting the mix has changed in the last five years.

Gasoline-electric hybrids accounted for almost all alternative sales in 2008, but the increased availability of pure electric, plug-in and diesel-electric powertrains has helped the segment gain more traction overall.

“The new government/industry ‘Go Ultra Low’ campaign to promote the advantages of ultra-low-emission vehicles will provide a further stimulus to this important, growing market,” the group says. “The plug-in car grant (up to £5,000 [$8,000]) continues to provide an important incentive to buyers of pure electric and plug-in vehicles.”

Charge Your Car, the company behind the first open network of recharging points for EVs in the U.K., says it reached a milestone Feb. 4 with 100,000 sessions on its network of 1,535 charging points.

SMMT data shows commercial-vehicle sales rose 5.3% in January to 19,939 units.

Van deliveries climbed 12.9% to 18,122 units. But, as expected, truck sales dived 37.0% to 1,817 units following the earlier move to Euro 6 emissions standards.

Hawes says the overall CV market grew as a result of a more robust business confidence.

“As expected, the pre-Euro-6 rush at the end of last year dented truck volumes in January – a market factor we expect to continue for some months,” he says. “(The) SMMT is confident that van registrations will continue to grow at a sustainable rate, while truck demand should level out over the full year.”