Figures released by the Society of Motor Manufacturers and Traders for January hint at a stablisation of the new car market.
A marginal increase of 0.03% in the new car market saw 128,853 registrations, bolstered by a 2.7% increase in retail sales compared to the first month of 2011.
On average, January accounts for around 7% of new car registrations annually, with plate-change month March being the most busy for new registrations.
Sales of diesel powered cars continued to grow, with diesels now accounting for 53.7% of new registrations compared to 50.5% a year ago. Alternative fuelled vehicles continuing their march, with a 17.7% increase in new car sales during the first month of this year.
The figures showed that the most popular new car during January was the Ford Fiesta.
However, the stable figures have not stopped the SMMT forecasting a 1.1% drop in the new car market for this year, blaming a weak economic outlook.
"The January new car market held firm with 128,853 registrations, marginally up on January 2011, a welcome sign of stability in uncertain economic times," said Paul Everitt, SMMT Chief Executive, "However, to maintain market stability, [the] government must act decisively and deliver much needed confidence to businesses and consumers."
