UK new car registrations reached 2,044,609 in 2012, representing a 5.32% increase on 2011, according to figures released by the Society of Motor Manufacturers and Traders (SMMT), fuelled by a 12.92% rise in private demand.
December car sales were also up 3.67% year-on-year to 123,557.
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Although this represents the highest annual volume since 2008, and the largest percentage increase since 2001, the new car market was still 14.95% below 2007 pre-recession levels.
Paul Everitt, chief executive at the SMMT, said: "Boosted by strong consumer demand, the market grew at its fastest rate for 11 years with innovative, fuel-efficient cars keeping buyers in showrooms.
"Looking ahead to 2013, we anticipate the market will hold firm, with manufacturers and dealers working hard to deliver quality and value to motorists."
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By GlobalDataKia and Hyundai saw sales rise 24.27% to 66,629, and 18.10% to 74,285, respectively, meaning an increase in market share from 2.76% to 3.26%, and 3.24% to 3.63%, respectively.
It was also a good year for Ford, the biggest-selling brand in the UK, as the American manufacturer saw sales increase 6.03% to over 281,000, while Vauxhall, the second-biggest seller, saw sales drop by 1.05% to 232,255 units.
Although small South Korean brand Ssangyong did not reach its stated aim of 2,000 cars sold, it did manage the largest percentage growth of any manufacturer in 2012, at 351.03%, to 875 sales.
Despite a 24.15% drop in year-on-year sales for the month, Audi still managed to grow sales by 8.6% over the year, to 123,622, just 3,098 units short of rival German luxury brand BMW for the year, though both are more than 30,000 new registrations ahead of Mercedes-Benz.
Among brands suffering heavy losses, despite annual registrations in four figures or more, Mitsubishi sales fell 33.47% to 6,549 units; Alfa Romeo sales 37.27% to 7,253; Subaru fell 23.20% to 2,023; and Saab, which was placed in administration last year before being bought with the aim of making it an electric vehicle brand, dropped from 4,138 units in 2011 to 232 in 2012.
Renault sales shrank 40.45%, however the company had expected sales to shrink, and the decline was offset by the 9.94% increase in Nissan, Renault’s global alliance partner, which shares financial operations through RCI Financial Services and registered 105,835 new sales in 2012, making it the UK’s sixth-best selling brand.
Further analysis of 2012 new registration figures from the SMMT and manufacturers will be published in the January issue of Motor Finance magazine.
