The UK new car market hit a new record in 2001 as registrations reached 2,458,769 units, up 10.7 percent on 2000, beating the previous record set in 1989 by 6.9 percent or 157,825 cars.
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SMMT chief executive Christopher Macgowan said: “’In each month of 2001, the new car market grew with the previous year-end record, set in 1989, falling by the end of November. December’s figures, which saw growth of 17 per cent, are really the icing on the cake.
“This was a year in which the sun shone on new car buyers with a more competitive market than ever before and a raft of enticing new models to tempt the buying public. Many commentators have waited for the market to cool, but I’m delighted that this hasn’t happened.”
Private buyers – as distinct from company or fleet buyers – led the market growth during 2001 with sales up 22 percent.
Analysts point to a favourable market environment in 2001 but urge a little caution in interpretation. Interest rates have been extremely low and and new car prices have been declining. But industry margins are historically very low.
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By GlobalDataNigel Griffiths, analyst at DRI-WEFA, said: “Margins are low, but at the same time, the UK market remains one of the most profitable in Europe and it’s still a ripe target for importers such as PSA.
“The outlook is for the market to decline in 2002 by 8 percent to around 2.27 million units as the economy slows, house prices weaken and prices stabilise. Also, interest rates could rise.”
