The UK car market is enjoying its longest ever period of sustained growth, new figures have revealed.
The data provided by the Society of Motor Manufacturers & Traders (SMMT) today (5 June) shows an increase in new car sales in May, which extends the run of consecutive months of growth to 27, breaking a record set in the late 1980s. New car registration rose by 7.7 per cent last month reaching 194,032 units, the most since May 2004.
The implications of new registrations must be recognised further down the line, too; it also represents positive news for used-car sellers as people trade in older vehicles, as well as garages and mechanics that will benefit from an increase in motoring activity.
As ever, it is urged any notable rises in a company's business activity must be reflected in its combined motor trade insurance policy. Selling or repairing more vehicles could translate into an upturn in the number of staff, machines or vehicles on site. This means that firms will need to ensure their motor trader’s policies provide adequate cover for all of this.
In total there have now been over a million registrations in this year to date, marking an 11.6 per cent rise from 2013. Mike Hawes, SMMT Chief Executive, commented: “The new car market has now grown in every month since March 2012 – the longest period of growth on record and a reflection of the UK’s ever-improving economic conditions.
“Over the past 27 months, increasingly confident consumers have been drawn to some fantastic new products, attracted by innovative technologies, improved fuel economy and competitive deals helping make a new car more affordable.”