In January new car registrations increased 11.5% in Britain as private demand surged.
“Lifted by a solid rise in private demand, the new car market posted its 11th successive month of growth with motorists attracted to forecourts by the latest models and competitive deals on offer,” said SMMT Interim Chief Executive Mike Baunton
Baunton added that after the UK market saw a strong performance in 2012, this year is expected to bring a modest rise, and further growth is to be seen in 2014. In January automakers sold 143,643 new vehicles in the UK, accounting for the third consecutive month of double-digit growth even if consumers keep their pockets closed due to the European crisis.
“Despite January’s encouraging start to 2013 after a resilient performance in 2012, the motor industry currently faces far from easy conditions with consumers still confronted by significant headwinds and businesses under pressure to contain costs,” said IHS Global Insight economist Howard Archer.
Analysts predict that auto sales will increase 0.6% to 2,057 units this year and 2.6% to 2 million in 2014. In January new car sales increased 11.5% to 143,643 units compared with the same period in 2011, while private registrations were up 15.9%.