UK car registrations regain traction but VW sales falter

UK new car registrations have regained speed after growth slowed in July, according to official figures from the Society of Motor Manufacturers and Traders (SMMT). According to the SMMT, 81,640 cars were registered in the UK in August 2016.

After rising by just 0.1% in July, August’s UK registrations grew by 3.3% compared with the same month in 2015. The figures suggest that it was fleet registrations which bolstered the market, however, as private registrations fell by 0.2%.

Year-to-date registrations are 1,680,799, up by 2.8% on the same period of 2015, with nearly 50,000 more cars registered this year so far.

The top ten best-selling cars in the UK, in depth, are here

As predicted, sales of alternatively fuelled vehicles (AFVs) rose again, with strong growth of 30.8% compared with the same period in 2015. The segment still only made up 3.1% of registrations last month, though. Diesel registrations fell again, by 0.2%, while petrol sales rose by 5.3%.

The biggest brand growths came from the smaller-volume brands, with Infiniti posting the biggest growth of 618% in August, over the same month in 2015. The brand still only represens 0.34% of the market, however, with 280 cars registered in August. Ssangyong, MG, Dacia and Jeep grew by 78%, 130%, 97% and 75% respectively.

Lotus’s registrations picked up significantly too, with the Hethel-based company posting 500% growth - registering 90 cars - compared with August 2015. This comes after Lotus registered just one car in July 2016.

The largest growth posted by a high-volume brand was that of Kia, with monthly sales growing by 81% compared with August 2015. The company's Kia Sportage crossover was one of the best-selling cars in the UK over the month.

Mitsubishi’s woes deepened following its fuel economy scandal, with a 39% shrinkage in UK registrations compared to August 2015. The brand now makes up just 0.45% - 367 cars – of the UK car market. Meanwhile, in the premium segment, BMW lost 1.98% of its market share compared with August 2015 – 96 fewer cars were registered across the month.

Vauxhall shrunk by 3.81%, selling 340 fewer cars in August 2016 over August 2015. Across the year, its market share has fallen by just over 4%. A Vauxhall spokesman put the slip down to the closing of product cycles, as well as the change to the new 66 plate, and Vauxhall's strategies surrounding it.

Volkswagen’s losses were the heaviest, with the brand losing 25% of its market share and nearly 2000 fewer cars registered in August 2016 over August 2015.

The brand still made up 6.97% of the UK car market in August, down from 9.63% in August last year. The Volkswagen Golf and Volkswagen Polo are still among the best-selling cars in the UK, however, and rising to fifth and sixth places respectively in August from sixth and seventh places in July.