UK fresh car market achieves record Two.Sixty nine million registrations in two thousand sixteen with fifth year of growth
The UK fresh car market achieved another record year in 2016, with annual registrations climbing for the fifth year in a row to almost Two.7 million, according to figures published today by SMMT. The market has experienced uplifts in ten out of the last twelve months, albeit ending with a December down slightly by -1.1% – with 178,022 fresh cars registered in the month.
Buyers were attracted by a range of fresh car models and attractive finance deals, pushing registrations up to Two,692,786 in two thousand sixteen – up Two.3% on the previous year and broadly in line with expectations. The UK fresh car market is one of the most diverse in the world, with some forty four brands suggesting almost four hundred different model types – and two thousand seventeen looks set to be another competitive year with almost seventy fresh launches already planned over the next twelve months.
Fleets were responsible for most of the growth, with request growing to a record 1.38 million units. The private market remains at a historically high level, with more than 1.Two million private buyers registering a fresh car in 2016, albeit request did fall over the latter three quarters. The competitive range of affordable finance is a crucial factor driving private request as consumers are able to take advantage of low interest rates and limber payment options.
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 request, up 22.2% across the year. Plug-in hybrids and petrol electrical hybrids, in particular, experienced significant growth, with request up 41.9% and 25.1% respectively. Meantime, more than Ten,000 motorists chose to go fully electrical in two thousand sixteen – up Three.3% on 2015.
Mike Hawes, SMMT Chief Executive, said
Despite 2016’s political and economic uncertainties, the UK’s fresh car market delivered another record spectacle as car makers suggested an incredible range of innovative and high tech models. Two thousand seventeen 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 fresh models arriving in 2017, there are still many reasons for consumers to consider a fresh car in 2017. Looking longer term, the strength of this market will rest on our capability to maintain our current trading relations and, in particular, avoid tariff barriers which could add significantly to the cost of a fresh car.