LONDON:New car sales rose to a record first-half high as buyers took advantage of finance deals and low interest rates to purchase the latest models.
Registrations rose 7% to 1.38m in the first six months of the year, marking the 40th month in a row of rising sales, the Society of Motor Manufacturers and Traders (SMMT) said on Monday. The figure was 324 higher than the previous record in the first half of 2004. In June, sales rose 12.9% to 257,817 vehicles.
Car sales rose even while the economy was in the doldrums and living standards fell as manufacturers offered deals that allowed buyers to lease cars and then trade them in. The SMMT said those deals combined with new, improved models had kept demand high.
First-half sales of British-built cars were the strongest for five years, with one in six buyers opting for such vehicles. The UK-built Vauxhall Astra, Nissan Qashqai and Mini were among the overall top 10 sellers.
Mike Hawes, SMMT’s chief executive, said: “It is encouraging to see more consumers choosing British models. This is important for the wider economy with 799,000 people now employed across the UK automotive sector, including retail.”
Manufacturers including Honda and Jaguar Land Rover announced more than £1bn of investment in the UK car industry in March after 2014 proved to be the sector’s best year since the financial crisis.
A larger range of models and a greater number of plug-in charge points helped push sales of such vehicles up 71% in June to 7,110. A £5,000-a-car government grant to encourage sales of electric vehicles has almost reached its limit of 50,000, the SMMT said. There had also been a surge in demand for electric and hybrid vehicles.
The top seller in the first half of 2015 was the perennially popular Ford Fiesta, followed by the Vauxhall Corsa and the Ford Focus. Hawes said he expected overall sales growth to be weaker in the second half of the year as the market slipped back closer to its normal rate.
Howard Archer, an economist at IHS Global Insight, said: “June’s gain is all the more impressive as the gains are now coming from a high base. The car industry will be hoping that there is no major fallout from events in Greece that weighs down appreciably on business and consumer confidence and foster caution over buying big ticket items such as cars.”
