Private new car demand rises to pre-recession levels

JonathanJune 6, 2013

The Society of Motor Manufacturers and Traders (SMMT) has released nationwide figures that reflect a dip in demand for commercial vans and trucks. The news isn’t all bad, however. Despite the fact that commercial vehicle (CV) registrations fell 4.7 per cent in May, the overall market is up 8.3 per cent since this time last year. Year-to-date, van registration volumes are strong as well, up 13 per cent from last year.

SMMT commercial vehicle manager, Nigel Base, said: “The overall CV market has performed well so far in 2013, but May saw volumes fall 3.8 per cent as van model cycles combined with Euro 6 uncertainty for trucks. For trucks, history tells us that purchases of Euro 5 will mix with new Euro 6 trucks as the year progresses, which could boost the market in the second half of 2013. For vans, the picture was positive up to May, so we anticipate this blip to be overcome as the year pans out.”

In contrast to uncertainty in the CV market, private new car demand rose to pre-recession levels last month. In May alone, private demand increased by 20.9 per cent, exceeding 2007 volumes. May’s performance represents the 15th month in a row in which demand has grown. Overall, UK new car registrations increased 11 per cent to 180,111 units, making it the largest May volume in over six years.

SMMT interim chief executive, Mike Baunton, said: “The performance of new car registrations in May marks a significant milestone for UK automotive… It is clear that buying confidence among UK motorists is very strong.”

The growth in demand may be caused by consumers switching to more efficient models, like the Fiat 500 Hatchback, which gets 70.6 MPG and has exceptionally low CO2 emissions of only 92 g/km. In addition, drivers are taking advantage of attractive offers and competitive car leasing deals throughout the automotive industry.

Ford Fiestas were the most popular model last month and year-to-date. Get your own for low personal leasing rates, which allow you to enjoy the bestselling model’s superior performance and stylish interior for affordable monthly instalments.

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