Figures released by the SMMT show that the UK car market continued to show improvement in September, with the market continuing to enjoy a boost from scrappage incentives.
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New car registrations were up 11.4% year-on-year in September to 367,929 units.
“New car registrations rose for the third month in a row in September. Market conditions remain challenging with demand being underpinned by the extremely successful scrappage incentive scheme,” said Paul Everitt, SMMT chief executive.
“The extension of the scheme will help to sustain demand through the latter part of this year and into 2010. This will allow economic recovery to strengthen and safeguard valuable industrial capability.”
The SMMT said that the September car market was almost 30,000 units above forecast, but still 51,361 units down on the 2007 September market and 9.5% off the average for the month between 1999-2008.
In the first nine months of the year sales of new cars reached 1,517,039 units, 15.5% below last year’s level.
Demand in the last three months has risen by 8.3%, but remains down 15.5% or 277,380 units for the year-to-date and down over 400,000 over the past 12 months.
Private demand again rose strongly in September, up 41.3%, boosted by the scrappage scheme, and year-to-date volumes are now within 1.9% of last year’s level.
Small car demand continues to grow, with mini volumes up 195.0% and the supermini segment up 21.2% in the month. Alternatively fuelled vehicle registrations rose 45.5% in September, due to new models.
The Ford Fiesta was the best selling model in the month, for the seventh time in 2009.
David Raistrick, UK Manufacturing Leader at consultant Deloitte, commented: “Today we’ve seen the third consecutive month of growth in new car registration figures, with an increase of 11.4%. September is an important month for new car registration figures given the demand for new number plates; hence it is critically important that the figures have risen significantly.
“The 11.4% rise in new car registrations exceeds market expectations and is a much more promising increase than the previous two months’ 6% and 2.7% rises, giving hope that the industry is on the slow road to recovery.
“Reports suggest that scrappage currently accounts for almost 25% of new car sales and this has no doubt added to September’s increased registration figures. It is a relief for the industry that the scheme has been extended. The extension of an extra 100,000 vehicles will hopefully maintain the momentum that the automotive sector needs to achieve a long lasting recovery.”
