New car sales in the UK rose 26.4% to 68,686 units, the rise boosted by comparison with a low tally in credit crunched February 2009 and the second to last month of the government’s extended scrappage scheme – 19.6% of last month’s volume was attributed to that. Year-to-date sales were up 28.7% to 214,165 units.
“Scrappage has generated eight consecutive months of growth in the new car market and we expect its benefits to stretch beyond the scheme’s closure later this month,” said Society of Motor Manufacturers and Traders (SMMT) chief executive, Paul Everitt.
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“Industry continues to face challenging market conditions, but positive trends in the fleet and business sectors suggest that negative impacts can be minimised. Strengthening business and consumer confidence remains industry’s priority. A clear and consistent approach to CO2 based taxation and improved access to affordable credit are essential elements in sustaining recovery in the new car market.”
Ford’s Fiesta was the top-selling model in February (3,236) and year-to-date (12,121), ahead of the Focus (3,035) and VW’s Golf (2,586). Year-to-date, the top five was Fiesta, Focus, Vauxhall Corsa, VW Polo and Vauxhall Astra.
Between 1999-2009, February typically accounted for 3.3% of the annual market, ahead of the March plate change peak, the SMMT noted. The 2010 February market was above expectations, just 1.3% below 2008’s tally, but still 12.2% off the 1999-2009 average.
March 2009 was particularly weak, down 30.5% to 313,912 units. 2010 is expected to recover slightly, with volumes expected to push above 360,000 units for the new ‘10’ plate, SMMT said. Over the past decade, March has been the strongest month for new car registrations, accounting for 17.8% of annual registrations.
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By GlobalDataMuch of the March recovery will be attributable to scrappage. Final orders through the scheme must be made by the end of March, or sooner if funds run out. The scheme’s impact will diminish during Q2 with market decline expected in the second half of 2010.
“New car demand will be building up, after a sustained period of hold-off, but with economic recovery still fragile and uncertainty over the impacts of the government’s budget in March and a general election in spring, the outlook for registrations in 2010 is subdued and cautious, with an expected decline of almost 10% to 1.82m units, the SMMT added.
