That’s according to the British Vehicle Rental and Leasing Association (BVRLA), following the release of new car registration data for 2014 from the Society of Motor Manufacturers and Traders (SMMT). 

The trade body for the vehicle rental and leasing industry has welcomed the SMMT data, which shows there were 2,476,435 new car registrations in 2014, up 9.3% on 2013. Fleet registrations also rose 8.7%, up to 1,178,416, and together with business sales, were responsible for over 52% of all new registrations. 

Figures from the BVRLA back these statistics up, showing that the fleet leasing sector also had a good year. 

Commenting on the SMMT figures, BVRLA chief executive Gerry Keaney said: ‘2014 was a great year for the retail and fleet motor industry. New fleet registrations hit a seven-year high, up nearly nine percent on 2013, and we saw consistent growth in the fleet leasing sector, with volumes up around 6%.’ 

‘We expect to see a further, steady increase in new leasing volumes this year. Demand for vehicle finance continues to grow – particularly from consumers, SMEs and salary sacrifice customers.’ 

As fleets seek lower running costs, demand for more efficient cars has grown, and the BVRLA expects to see average CO2 emissions for the lease fleet fall below 120g/km of CO2 for the first time in 2015. The association also predicts a continued trickle away from diesel cars into smaller-engined petrol or hybrid vehicles. 

This shift has already started to take place, and 2014 saw a surge in demand for ultra-low emission vehicles (ULEVs). Registrations of plug-in cars increased four-fold from 3,586 in 2013 to 14,498 in 2014, and the BVRLA expects this to continue as ULEVs offer increased efficiency and reduced running costs.