In 2011 UK car registrations fell to 1.94 million, a 4.4% drop and the lowest number of registrations in more than 10 years, according to the SMMT (Society of Motor Manufacturers and Traders). This December saw a continued drop of 3.7% in demand for new cars in comparison to December 2010.
Car registrations peaked at 2.58 million in 2003, current figures are 25% below this making it only the second time since 2000 the number has fallen below 2 million.
The Ford Fiesta proved to be the most popular new car, with VW Golf taking the spot as favorite diesel vehicle.
The combination of regulatory requirements, new technology and a move towards driving smaller cars all contributed to producing the lowest average rate for new car carbon emissions last year, just 138.1g per km. Average fuel efficiency hit more than 52 miles per gallon, a new high.
Registrations by fleet buyers have massively affected the market which is supported by figures monthly and for the full year. Private registrations saw a drop of 14.1% during the last year while fleet registrations went up by 4.7%.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders said that 2012 would see tough trading conditions due to weak economic growth although consumers will be encouraged into showrooms by the combination of greatly improved fuel efficiency vehicles, huge numbers of new or updated models and the exciting new technologies now available.
Fleet customers are expected to dominate the market in the following year, following last years trend when almost 60% of new car sales were purchased by fleet retailers.