UK car registrations rise to 12-year high in January, SMMT reveals

Registrations of new cars in the UK rose to a 12-year high in January, led by higher demand from private motorists, figures showed on Monday.

The Society of Motor Manufacturers and Traders said 174,564 new cars were registered last month, up 2.9% on the previous year.

Registrations by private motorists had the strongest performance, rising 5% to 76,726 new cars.

Fleet demand also rose 1.4% to 91,181 new cars while business registrations fell 1% to 6,654.

The alternatively fuelled vehicle segment jumped 19.9% to 7,279 new registrations, to take a record 4.2% market share, compared to 3.6% in 2016.

Petrol vehicles saw 88,507 cars registered, 8.9% higher than the prior year, with market share increasing to 50.7% from 47.9%.

Diesel vehicle registrations fell 4.3% to 78,778 cars and market share dropped to 45.1% from 48.5%.

The overall growth in registrations came even as recent surveys indicated a decline in consumer confidence after the Brexit vote.

A weaker pound following the EU referendum has prompted many manufacturers to raise prices to offset higher import costs.

Looking ahead, SMMT expects the market to slow over coming months.

“After record growth in 2016, some cooling is anticipated over the coming months, but provided interest rates remain low and the economy stable, the market is in a good position to withstand its short-term challenges,” said Mike Hawes, SMMT chief executive.