Sales of new cars in January 2013 have risen by 11.5%, according to figures released by the Society of Motor Manufacturers and Traders (SMMT) which show that there were 14,790 more new vehicles registered last month than there were in January 2012. Leading car insurance comparison
website Tiger.co.uk looks at the data in greater detail.
According to figures published by the SMMT, there were 143,643 new cars registered last month which was 11.5% higher on comparable 2012 sales. This means that the new car market has enjoyed its 11th
month of growth in a row, and third month of double digit growth in the last four months, which has caused the SMMT to revise its full year forecast upwards for 2013.
A large proportion of January’s rise in sales was attributed to a 15.9% rise in private sales. According to the SMMT, the focus for consumers was on smaller cars and fuel efficient models. This was backed up by the report which showed a rise of 7.9% in alternatively fuelled car sales and that the three best-selling cars in January were the Ford Fiesta followed by the Ford Focus with the Vauxhall Astra close behind.
Last month’s growth in the new car market indicates that consumer confidence is increasing, though it is still a very tough market for vehicle manufacturers. Purchases could have been boosted by offers like twelve months free car insurance
and inclusive breakdown cover. Furthermore, the SMMT has said that advances in alternative fuel technology which are attractive to both cost conscious and environmentally minded UK drivers could be another reason for growth.
Andrew Goulborn, Commercial Director at insurance comparison site Tiger.co.uk commented: “This is good news as growth in the new car sales market is often a good indicator of consumer confidence. However the economic outlook in the UK is still challenging and motorists in particular have been feeling the pinch. Our monthly motor insurance price monitor, Tiger Watch, shows that while motor insurance rates have fallen by about 2.1% compared to those recorded by Tiger.co.uk a year ago, drivers are also having to deal with petrol and diesel price increases which is likely to be what is driving the interest in more fuel efficient models. We are hopeful that this upward trend in sales continues and that more fuel efficient technologies continue to be developed by motor manufacturers”.