U.K. Market Stays on Roll With Best May Since 2004

The U.K. new-car market breaks an important record with its 27th consecutive month of growth, topping a longstanding mark set in the late 1980s.

It was good news all around as the May result, up 7.7% to 194,032 units, was the best for the month since 2004.

The performance pushed the U.K. industry beyond 1 million units for the year to date, with volume up 11.6% to 1,058,974 units.

Society of Motor Manufacturers and Traders CEO Mike Hawes says the new-car market now has grown in every month since March 2012, reflecting the U.K.’s ever-improving economic conditions.

“Over the past 27 months, increasingly confident consumers have been drawn to some fantastic new products, attracted by innovative technologies, improved fuel economy and competitive deals helping make a new car more affordable,” Hawes says in a statement.

But he expects some consolidation.

“With SMMT forecasting an overall rise of around 6% over the year, the coming months should see some leveling off in growth rates as underlying demand stabilizes,” Hawes says.

The Ford Fiesta topped May’s sales with 9,450 units, ahead of the Volkswagen Golf (7,134), Vauxhall Corsa (6,526) and Ford Focus (5,824).

Ford has the two leading models year-to-date, with the Fiesta finding 58,940 buyers and Focus 37,355 units. General Motors subsidiary Vauxhall’s Corsa follows with 34,324 units.

Kia set a monthly record as sales rose 7.3% to 6,015 units, taking its 5-month total up 10.4% to 33,589 units.

“The market remains strong and customer confidence appears solid, which is good news for the entire industry and the U.K. continues to lead Europe in terms of recovery,” Kia U.K. President and CEO Paul Philpott says in a statement.

SMMT data shows commercial vehicle sales rose 12.6% in May to 27,198 units for a 5-month total up 8.3% at 138,027 units. Vans deliveries were up 18.4% to 24,283 units, while truck sales fell 20.0% to 2,915 units.

The SMMT says a review of buying trends finds motorists demanding ever-increasing levels of style, comfort and functionality from their cars.

In the decade from 2004 to 2013, the number of cars registered with alloy wheels as standard jumped from 65.0% to 87.1%, while air conditioning was standard on 95.4% of cars in 2013 compared with just 75.3% in 2004.

Reflecting the intensifying demand for in-car connectivity, sales of cars with standard MP3 capability increased from 83.3% of the market to 95.7% between 2010 and 2013.