Fleet and business new car registrations were up by more than a third in January compared to the start of last year, newly published sales data suggests.
The figures, from the Society of Motor Manufacturers and Traders (SMMT), show that 72,355 new company cars were registered to fleet and business last month – 37% more than the 52,750 units in January 2022.
Overall, 131,994 new cars were registered during the month – a 14.7% year-on-year increase, with fleet and business sales equating to 55% of the market.
It was the best start to the year since January 2020’s pre-Covid 149,279 units and marks the sixth successive month of expansion.
The strong start to the year is mirrored in the latest market outlook, which anticipates 1.79 million new car registrations in 2023, an 11.1% increase on the past year but still well below 2019 levels.
This also represents a -0.8% reduction on October’s outlook, against a weak economic backdrop.
However, a further 9.3% increase is expected next year, with 1.96 million new cars expected to join the road in 2024.
SMMT chief executive, Mike Hawes, said: “The automotive industry is already delivering growth that bucks the national trend and is poised, with the right framework, to accelerate the decarbonisation of the UK economy.
“The industry and market are in transition, but fragile due to a challenging economic outlook, rising living costs and consumer anxiety over new technology.
“We look to a Budget that will reaffirm the commitment to net zero and provide measures that drive green growth for the sector and the nation.”
