Latest SMMT data shows that fleet sales rose 8.7% over the whole of 2014, reaching a total of 1,178,416 units compared with 1,084,279 for 2013. The sub-25 business sector saw even stronger growth, with 2014 registrations up 12.0% to 118,520 units from 105,836 the previous year. And private registrations also continued to grow, with a rise of 9.8% for 2014 to 1,179,499 units.

Overall the market saw 2,476,435 new cars registered in the UK in 2014 – up 9.3% on 2013 and representing the most registrations in a calendar year since 2004. The growth compares to the EU average of 5.7% and means the UK remains the second largest market in the EU behind Germany and ahead of France, Italy and Spain.

2014 also bears the distinction of being the fourth largest year for car registrations of all time; only 2002, 2003 and 2004 saw more cars registered.

Every month in 2014 saw an increase, with December’s 8.7% rise marking the 34th consecutive month of growth. The month also saw fleet registrations rise 7.4% whilst business registrations were up an impressive 46.4%. Private registrations saw growth of 5.7%.

Mike Hawes, SMMT chief executive, said: ‘UK new car registrations returned to pre-recession levels in 2014, as pent-up demand from the recession years combined with confidence in the economy saw consumer demand for the latest models grow consistently and strongly.

‘The year was particularly strong for alternatively-fuelled vehicles as increased choice, coupled with a growing desire for reduced costs and greater efficiency, resulted in a quadrupling of plug-in car registrations over 2013. With a variety of new plug-in models expected in 2015, this area of the market will continue to grow significantly. For the market as a whole, we expect a more stable 2015 as demand levels off.’

David Raistrick, UK automotive leader at Deloitte, welcomed the figures, commenting: ‘At the beginning of 2014, it was clear that we were going to see healthy levels of growth in new vehicle registrations, although the final numbers of almost 2.5m have surpassed everyone’s expectations, especially given the difficulties experienced in the mainstream European markets.

‘There is naturally going to come a time when the UK new car market’s record run of comparative monthly growth will come to an end. However, when this point comes, and our analysis suggests it will be 2015 with a plateau having now been reached, it is important that the market reaction is measured. A levelling off in new registrations should be balanced against the reality that as recently as only three years ago, new cars sales were less than 1.95 million, and the European market has been in free fall over this period. Equally, there is a finite limit to the numbers of new cars required every year, no matter how buoyant the markets may be. Current levels are hugely positive, and flat sales this coming year, or even a slight reduction, should still be seen as a positive position, and not a tale of woe. 

'A number of positive signs remain for the new car market.  There is no immediate indication that finance costs will increase, with the possibility of an interest rate rise receding as inflation remains below the Bank of England’s target.  Higher levels of employment should give more private buyers the confidence to make a purchase.  Finally, the continuing troubles in the Eurozone will encourage manufacturers to support the UK’s buoyant market.'