New car registrations hit a decade high in January, with the 169,678 cars registered more than any January since 2005, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
This growth was largely driven by private sales, which jumped 8.2% year-on-year to 73,061 registrations. In contrast fleet sales shrank slightly (1.1%) to 89,901.
Go deeper with GlobalData
Alternative-fuel vehicle (AFV) sales kicked of 2016 as they finished 2015 – by growing rapidly. 6,075 AFVs were sold in January 2016, up from 4,598 in the same month 2015.
Both petrol and diesel car sales increased year-on-year. Petrol sales increased 3.7%, and diesel car sales increased 0.6%, over the period.
Mike Hawes, SMMT chief executive, said: "January’s solid performance puts the new car sector in a good position to start the year. Providing consumer confidence remains strong, we expect a more stable 12 months ahead, broadly similar to 2015 which was, of course, a record year."
Sue Robinson, director of the National franchised Dealers Association (NFDA), described the sales as ‘extremely positive.’
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataShe said: ""Increased retail demand continued to drive UK car sales in the first month in January.
"Consumer confidence continued to grow as the economy becomes more robust, and retail customers feel secure enough to commit to buying cars. This is helped by the competitive offers made available by the manufacturer and a more disposable income due to higher levels of employment.
"On the back of this we predict that the franchise sector will create 15,000 new jobs in 2016 following all the new and nearly new cars being serviced.
"We expect the market to continue to perform well and to build on the success of 2015."
Brands
Despite the overall market growing, a number of major manufacturers saw sales fall. Volkswagen sales fell 13.8% year-on-year to 12,055, while Vauxhall sales fell 9.9% to 15,262. Nissan sales also fell over the period.
In contrast, Mercedes-Benz sales jumped by over 25% to 11,800 – leapfrogging Nissan (10,720 sales) and Audi (11,513) in the process, and to within 300 sales of Volkswagen.
Market leader Ford sales grew 2.6% to 22,035, extending its lead over its closest competitors.
