Car sales still accelerating
The surge in new car sales has continued into the new year. There were 154,562 new vehicles registered last month, a 7.6% rise on January last year, the Society of Motor Manufacturers and Traders (SMMT) said.
The society said sales of alternatively fuelled vehicle increased by 25%.
SMMT chief executive Mike Hawes said: "The new car market ended 2013 on a high, so it is encouraging to see the January market start the year strongly.
"As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars. Looking ahead, the UK automotive industry expects to see moderate, sustainable growth in 2014."
The best-selling models in January were Ford's Fiesta and Focus. The seemingly unstoppable growth of Jaguar Land Rover stalled, with both brands seeing UK sales figures go into reverse during January, while the big winners were Fiat, Mazda, Skoda and Seat, which all racked up hefty double-digit growth.
Peter Gallimore, manufacturing partner at Deloitte in the West Midlands, said: "The UK new car market has continued the recovery that started some 23 months ago with a positive start to 2014. Indeed, the new registrations for January are the highest recorded since 2008. Although this is too early to draw any significant conclusions, the level of sales will be a cause for optimism that the momentum achieved during 2013 has not been washed away by the particularly wet start to the year.
"PPI compensation has bolstered consumers' buying power over the past two years, it will be interesting to see if this will continue. Buying new cars through the attractive financial products available at relatively low interest rates has also been a major factor in supporting growth."
