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SMMT: Van registrations down in January, but market will remain stable
Wednesday 08 February 2012 Back to Blog
A drop in van registrations in January was not enough to convince the Society of Motor Manufacturers and Traders (SMMT) to alter its prediction that the van market will remain stable throughout 2012.
The motor industry organisation revealed van registrations fell by 16.4 per cent to 14,338 units last month, taking the figure for the rolling year to 257,337, up by 12.6 per cent.
Although the total registrations were below the SMMT's forecast of 17,000 units, the market faced a tough ask to measure up with the total for January 2011, when registrations rose by almost 50 per cent year on year.
Ford continued to dominate the market for commercial vehicles weighing less than 3.5 tonnes, racking up 3,709 new registrations. Throughout the month, one in every four vehicles registered in this category was manufactured by Ford. Volkswagen, Citroen and Peugeot also made the top five, while Mercedes - which was placed in sixth - enjoyed a 9.31 per cent increase in registrations when compared to the corresponding period in 2011.
In the 3.5 to six tonne category, Ford again took the top spot, with the automotive giant's 136 registrations representing an upturn of 16.24 per cent. However, even more impressive growth was seen at second-placed Mercedes, which all but doubled its registrations from 65 in January 2011 to 129 last month.
The decline in the van market offset a 45.4 per cent rise in truck registrations, meaning the wider commercial vehicle (CV) sector saw a slight dip of 8.6 per cent year on year.
Despite the downturn, SMMT chief executive Paul Everitt remained upbeat about the prospects of the CV market throughout the remainder of 2012.
"The commercial vehicle market got off to a mixed start in January with very strong truck registrations outweighed by a fall in the van market. SMMT expects the CV market to be steady, ending the year marginally up on 2011," he commented. "Government support for business will be key to maintaining market stability."
Mr Everitt predicted that if confidence can be maintained through 2012, growth should be recorded in 2013.
The automotive organisation went on to express confidence in the outlook for the van sector, stating that if the remainder of the year pans out as expected, registrations will remain stable despite the "very weak economic and uneasy financial settings".
January's drop in van registrations came after a positive December for the market, when total units rose by 7.8 per cent year on year to 18,415. For 2011 as a whole, more than 260,000 vans weighing up to 3.5 tonnes were registered, a figure that had been forecast by the SMMT, meaning growth in the market stood at 16.7 per cent on 2010.
Commenting at the time, Mr Everitt said the combined CV market had enjoyed "consistent growth" during 2011, with a series of month-on-month rises driven by a renewed sense of confidence among businesses.
Demand from van leasing customers may have been one of the factors to boost registrations last year. The use of leasing by businesses to acquire a van has risen by an average of 13 per cent since the credit crunch, with an increasing number of firms choosing to lease as a viable alternative to shelling out cash upfront on a new vehicle. This is particularly important given the difficulties faced by many businesses looking to extend or increase their borrowing in the current financial climate.
"Innovative developments in vehicle design and technologies provided solid business reasons for companies to upgrade their vehicles in 2011," Mr Everitt added. "There can be no room for complacency this year, government must deliver its growth strategy and help strengthen business and consumer confidence."