Just over 1,940,000 new cars were sold in
2011, according to latest figures from the Society of Motor
Manufacturers and Traders (SMMT).
Though sales dropped by 89,593 units, or 4.4%,
compared to 2010, the contraction was not as drastic as the
100,000-plus units predicted, thanks in part to increasing sales in
fleet and non-petrol vehicles.
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December 2011 saw sales fall by 3.7% compared
to the same month the previous year, though also not as sharply as
forecasted, and fourth-quarter sales were down 1.8% on 2010.
Independent macroeconomic predictions have,
however, prompted the SMMT to rethink its predictions for 2012 and
2013.
Slow off the grid
Notably, new car sales in the second half of
2011 were only down 1.1% on 2010. The SMMT attributes market
shrinkage across 2011 to a “weak start to the year” with sales
volumes set against Scrappage-aided markets until July.
In September 2011, the SMMT had forecasted
marginal growth in new car sales to 1,964,000 vehicles in 2012, and
recovery to 2010 levels of over two million units in 2013.
Changing estimates for the UK economy,
consumer spending, and uncertainty in the eurozone have, however,
prompted the SMMT to reassess these figures.
The automotive arm of Pricewaterhouse Coopers
(PwC) is already
warning of 2012 sales falling further, likely below 1,900,000
units.
Selling the alternative
PwC also point to the reliance on the
burgeoning fleet market in the UK, underscored by the SMMT figures.
While the private market for new car sales dropped in 2011,
fleet sales grew by 4.7%, an additional 45,893 vehicles,
increasing the fleet market share of new vehicle registrations to
52.5%, from 47.9%.
A contributory factor to the rise in fleet is
the marketing of cars with perceived reduced emissions to company
car managers, bringing tangible cost savings through benefit in
kind taxation relief and fuel expense.
While the RAC calculates that the cost of
private motoring has risen by 14% in 2011, Julie Jenner, chairman
of car fleet association Acfo, proclaims: “A company car is the
financially astute choice in these austere economic times.”
According to the SMMT figures, across both
fleet and private purchasing, diesel and alternatively-fuelled cars
both recorded best-ever market shares in 2011.
Diesel engine vehicles outsold petrol
counterparts for the first time, a market trend that manufacturers
such as Mazda have
targeted with finance offers and
then expanded on.
Similarly, Mitsubishi is
pushing hard to sell its first mass-produced electric vehicle
(EV) in the UK, with all franchised dealers taking on EV specialist
staff, while
Renault UK’s recent restructure emphasises the sale of EVs and
training of EV staff.
Although the figures for 2011 may make EV
sales worth chasing – total petrol/electric hybrid sales are up
5.6% on 2010, and total pure electric sales have risen from 138 to
1,082 units – figures quoted by used vehicle valuation body CAP
suggest that these registrations are dominated by fleet sales.
richard.brown@vrlfinancialnews.com
