New car registrations passed the one million mark in June, growing 10% in the first half of 2013 to 1,163,623 units, with fleet sales accounting for 606,125 units –  a 52% market share.

Fleet registrations in the first six months of 2013 are 24,718 units higher than the 581,407 cars sold in the first half of 2012, when fleet market share stood at 55%.

Private, fleet and business sectors grew from January to June, but private demand increased the most over the first half of the year, up 17.1%, after a 21.3% rise in June.

During June, there were 118,026 units registered to fleet and business, equating to 55% of the market and 8,412 units higher than the 109,614 units registered in June, 2012.

"Boosted by consistently strong private demand and further growth in June, half-year new car registrations have topped the one million mark," said Mike Baunton, SMMT interim chief executive.

"June secured the 16th month of consecutive growth, a clear indicator that manufacturers and dealers are delivering desirable new products with tangible cost savings from the latest fuel-efficient technology coupled to a wide variety of competitive finance offers.

“While there are still potential challenges ahead, recent robust growth suggests that the market is on course to perform well ahead of 2012 levels."

The UK continues to buck new car market trends in some EU27 countries, with buyers returning to the market after a sustained hold-off from purchasing new vehicles, enticing finance deals and desire to switch to more fuel-efficient models driving market growth.

In fact, motorists switching to more fuel-efficient cars have helped reduce average new car CO2 emissions to 129.1g/km in first half 2013, down 3.7% on a year ago.

The Supermini Ford Fiesta remains the best-selling model in both the month and year-to-date, and the growth in the Supermini and Mini segments has contributed to the rise in petrol-powered car registrations, although in June alternatively-fuelled cars recorded a 26.2% rise.

David Raistrick, UK automotive leader at Deloitte, said: “The challenge going forward is that the budget end of the market remains the growth area for the European mainland with pressure remaining on manufacturers’ profit margins.
 
“At the halfway point of 2013, the UK new car market is nearly 100,000 new car sales ahead of the levels reached this time last year. 

“Industry data points to the growth in sales being largely driven by the private buyer who continues to be supported by the availability of competitive finance deals on new vehicles. 

“Indeed, the need to compete by providing the low finance rates highlights the increasing importance within Europe of the UK market as the level of sales in Germany, France, Italy and Spain continues to contract.

“With base rates remaining at historically low levels, there is no immediate end in sight for the availability of relatively cheap financing options for the UK car buyer.

Raistrick says it will be interesting to see how the introduction of government incentives in European markets affects the level of new car sales over the second half of 2013. 

“With Spain having implemented a rebate scheme for private buyers who trade in old cars for new and the French government looking to allow private-sector workers to tap into corporate employee-savings plans to help fund significant purchases such as cars, there are definite steps being taken to help the automotive industry to turn the corner in these markets,” he said.

 

	June			Year-to-date
1	Fiesta	11,332	1	Fiesta	63,040
2	Focus	9,128	2	Focus	47,675
3	Corsa	8,868	3	Corsa	46,147
4	Astra	7,074	4	Astra	33,731
5	Golf	5,875	5	Golf	32,131
6	3 Series	5,432	6	Qashqai	27,112
7	Polo	4,703	7	Polo	23,287
8	1 Series	4,678	8	3 Series	21,588
9	Qashqai	4,507	9	208	20,815
10	208	3,649	10	1 Series	20,007