This article was originally published on www.fleetnews.co.uk
The UK new car market achieved another record year in 2016, with annual registrations climbing for the fifth year in a row to almost 2.7 million.
Fleet and business sales drove the growth, with 1.48 million vehicles registered, up from 1.42 million in 2015.
The SMMT’s latest registration figures show overall uplifts in 10 out of the last 12 months, albeit finishing with a December down slightly by -1.1% – with 178,022 new cars registered in the month.
Diesel and petrol cars continued to be by far the most popular fuel types for consumers with market share at 47.7% and 49.0% respectively. However, alternatively fuelled vehicles (AFVs) experienced a strong uplift in demand, up 22.2% across the year. Plug-in hybrids and petrol electric hybrids, in particular, experienced significant growth, with demand up 41.9% and 25.1% respectively. Meanwhile, more than 10,000 motorists chose to go fully electric in 2016 – up 3.3% on 2015.
Mike Hawes, SMMT chief executive, said, “Despite 2016’s political and economic uncertainties, the UK’s new car market delivered another record performance as car makers offered an incredible range of innovative and high tech models. 2017 may well be more challenging as sterling depreciation raises the price of imported goods but, with interest rates still at historic lows and a range of new models arriving in 2017, there are still many reasons for consumers to consider a new car in 2017. 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.”
BVRLA chief executive Gerry Keaney added: “2016 was another great year for the automotive industry, with nearly 1.5million new cars registered to fleets and businesses. BVRLA members buy many of these vehicles, and while these sales will be classed as fleet registrations, they are often leased to consumers.”
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