Big increase in UK new car registrations shows Europe the way
We should always keep a close eye on what is going on in our nearest neighbouring market, and in this regard their new car sales in 2013 makes impressive reading. Figures just released by their Society of Motor Manufacturers and Traders (SMMT) show that there were 2,264,737 new cars registered in 2013, which is up 10.8% on 2012. This exceeded the SMMT’s ambitious 2.25 million forecast for the year.
This represents the highest annual registration total since 2007, and in basic terms, an average additional 600 extra cars registered per day in 2013 than in the previous year. This performance cements the UK firmly as Europe’s second largest car market and only one to grow consistently throughout the year.
The SMMT is taking a conservative forecasting position in relation to the 2014 – their experts expect the UK market to stabilise with sustainable growth of around 1 per cent over the year ahead.
“With its best year since a pre-recession 2007, the UK new car market has helped stimulate the country’s economic recovery,” said Mike Hawes, SMMT Chief Executive. “While the European market is only now showing signs of improvement, the UK has consistently outperformed the rest of Europe with 22 consecutive months of growth. The 10.8% increase in 2013 reflects the attractive financial offers available, as well as increased demand for more technologically advanced new cars. We expect new car registrations to remain stable in 2014 as customers return to a more regular replacement cycle.”
Below are some graphs and figures that clearly show the excellent performance of the UK’s new car market.
UK & EU27 new car registrations (rolling year total December 2006 to date)
Registrations by segment type
Since 2007, the UK market has seen a shift away from the Upper Medium segment towards smaller cars in the Mini and Supermini segments, as well as the MPV and Dual Purpose segments.
Change in buying patterns has been driven by demand for smaller, more fuel-efficient models, as well as the greater versatility offered by vehicles in Dual Purpose and MPV segments.
Dual Purpose sales overtook Upper Medium volumes in 2013 to become the third largest segment.
The Supermini segment remains the largest by volume, with a market share in 2013 of 35.9%.
Registrations by sales type (rolling annual total, January 2011 to date)
All sales types recorded growth in 2013, although it was the private sector which saw the largest volume gain.
Improving consumer and business confidence, after an extended hold-off period and a competitive market place helped fuel sales growth.
Increase in private registrations accounted for two-thirds of overall market growth. In 2013 private buyers accounted for 47.5% of the market, up from 45.5% in 2012.
Registrations of hybrids and plug-in cars
Registrations of hybrid and plug-in cars rose 20.5% in 2013 to 32,715 units.
In 2011, plug-in vehicles (pure electric, plug-in hybrids and range extenders) accounted for 4.5% of combined plug-in and hybrid sales; this increased to 11% in 2013.
Within the past two years the number of plug-in models on sale has increased from six to 17.
Registrations in Europe, January-November 2013 (Source: ACEA)
The UK has been a key market in an otherwise subdued European economic marketplace. In 2013, the UK consolidated its position as the second largest market in Europe (after Germany).
Data to November shows the UK market up 9.9%, or over 190,000 units. The EU27 market as whole was down 2.7% or over 300,000 units.
The Spanish market, supported by its own scrappage scheme, saw volumes rise 2.1% in 2013, while the German, French and Italian markets all fell.
