May saw a 2.5 per cent rise in new car registrations, showing that growth in the market for car sales is remaining steady, following a 2.0 per cent rise in April.
The figures are the latest to emerge from the Society for Motor Manufacturer and Traders (SMMT), which releases monthly updates on the state of the market. A total of 203,585 units were registered throughout the month of May.
Car dealerships will welcome the news that the market remains solid for new cars, despite the subdued growth. However, it is vital that dealerships ensure their motor trade insurance and road risks insurance policies are up to date to protect against unforeseen costs, losses and damage that can put an end to their business, even when the market is strong.
The SMMT figures showed that the Ford Fiesta and the Volkswagen Golf were the biggest sellers of May, with the Ford Fiesta also leading sales for the year to date.
Although, on the face of it, the continuing growth in new car registrations in very positive, the growth is relatively low and the industry says this could be down to uncertainty surrounding the upcoming EU referendum. In addition, it was noted that growth in demand for alternative fuel cars outpaced the market, and diesel demand also grew faster than demand for petrol-fuelled cars.
Mike Hawes, the SMMT chief executive, gave a statement to partner the latest statistics. He stated: "The new car market in May remained high with compelling offers available on the latest vehicles, but the low growth is further evidence of the market cooling in the face of concerns around economic and political stability.
"Whether this is the result of some buyers holding off until the current uncertainty is resolved or a sign of a more stable market for new cars remains to be seen.”
