New car registrations were up in January, with the UK automotive industry expecting to see 'moderate, sustainable growth in 2014', according to SMMT Chief Executive Mike Hawes.

Buyers are increasingly being attracted by fuel efficiency, with a typical new car 27 per cent more efficient than a seven-year-old model. Alternatively-fuelled vehicle registrations have also increased by 25 per cent over the last 12 months.

"The new car market ended 2013 on a high, so it is encouraging to see the January market start the year strongly, rising 7.6 per cent," he said. "As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars. Looking ahead, the UK automotive industry expects to see moderate, sustainable growth in 2014."

Experts from the Society of Motor Manufacturers and Traders (SMMT) expect 2014 to see more moderate growth than 2013.

The Ford Fiesta, Ford Focus, Vauxhall Corsa, Volkswagen Golf, Volkswagen Polo, Vauxhall Astra, Audi A3, Nissan Qashqai, Nissan Juke and Fiat 500 were the top ten best selling cars in the UK in January. Motorists drove away 9,072 Ford Fiestas while 2,595 Fiat 500s were driven home.

In total, 154,562 cars were sold in comparison to 143,643 in January last year - a 7.6 per cent increase. Diesel-powered vehicles are proving to be more popular, with a 9.1 per cent increase in sales on last January: 79,459 against 72,839 last year. Petrol-powered vehicles saw a modest 5.4 per cent increase from 68,517 last January to 72,244 this year. Fleet sales once again exceeded private sales.

The automotive industry is a vital part of the UK economy accounting for £59 billion turnover and £12 billion value added. With more than 700,000 jobs dependent on the industry, it accounts for 10% of total UK exports and invests £1.7 billion each year in automotive R&D. The industry plays an important role in the UK’s trade balance, with vehicle manufacturers exporting around 80 per cent of production. More than 30 manufacturers build in excess of 70 models of vehicle in the UK supported by around 2,500 component providers and some of the world''s most skilled engineers.

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