2014: best year for new car sales in a decade
2,476,435 new car registrations recorded in 2014 making it the best year since 2004
Britain has just recorded its best year for car registrations since 2004 – and the fourth best year ever.
The final figure of 2,476,435 vehicles was confirmed this morning by the Society of Motor Manufacturers and Traders – a total surpassed only in 2002, 2003 and 2004. And SMMT chief executive Mike Hawes said: “The year was incredibly strong – stronger than we expected.”
The total marked an increase of 9.3 per cent over 2013, with the rise attributed to buyers’ increased economic confidence and wide availability of attractive finance deals. Around 75 per cent of buyers in 2014 secured their cars on a deal, with PCPs the most common option.
Only Spain, fuelled by a scrappage scheme, recorded a greater growth in the EU, while Britain remains second only to Germany in terms of total sales.
Rise in supermini and crossover market sectors
Significant market trends included the rise in sales of superminis and crossovers, while the shift to premium marques continued, too. Sales of low-emission vehicles quadrupled too, although the total of 14,498 is a mere fraction of the market.
Meanwhile, the number of cars manufactured in the UK in 2014 was broadly similar to 2013, at around 1.5 million units – “slightly disappointing” according to Hawes.
Around 80 per cent of the cars made are exported, and Hawes said: “The Eurozone and European markets have not recovered as quickly as we anticipated. And the Russian market is much lower than this time last year.”
However, manufacturing is expected to increase in 2015, with a full year of MINI and Nissan Qashqai production being bolstered by the arrival of the Land Rover Discovery Sport and Jaguar XE. And manufacturing is still predicted to reach all-time record levels by 2017.
SMMT “cautiously optimistic” for 2015
Hawes added that he was “cautiously optimistic” for 2015, while admitting the current rate of growth would slow significantly.
The SMMT expects an increase in registrations of “one to two per cent”, as the market stabilises, with a figure of 2.5 million possible.
“Previously that has been seen as high watermark, but in the medium to long term I don’t know exactly what the new norm will be,” admitted Hawes.
Higher interest rates and uncertainty about the General Election are likely to have an impact on sales in the 12 months ahead, Hawes admitted.
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