The UK new car market continued its slow 2005 decline in July, with sales falling 6.6% year on year to 175,277 units.
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Year-to-date volume of 1,471,762 was down 5.9%, and private buyer sales were off 10.8%. But sales of diesel models bucked the trend, rising 1.5% in July.
Business sales rose 18.9% year on year in July though registrations to large fleets were off 6.8%. Net fleet volume was down 4.5% in July.
According to the Society of Motor Manufacturers and Traders (SMMT), the ongoing demise of MG Rover – as leftover stocks of finished cars are sold off at huge discounts – is now having a “less significant” effect on sales overall.
The SMMT said MG Rover’s volume loss in July, at 3,561 units, accounted for 28.8% of the overall dip in sales – down from 53.2% in June.
Sales of UK-built cars dropped 5.7% in July, though registrations of imported cars also fell, by 6.8%. The market share taken by UK-built models year to date was 17.6% versus 18.7% a year ago.
The Ford Focus was again the top selling car line in July and also the top diesel for the first time this year. Lower medium segment cars – such as this – have shown the best growth over the course of 2005, up 6%.
Diesel car sales grew for the 58th consecutive month in July 2005, although at a more modest 1.5%.
The SMMT said that previous growth in diesels and general market trends suggest that the first decline in diesel volumes, in almost five years, is likely.
Nevertheless, diesels’ share of the UK market has continued to climb to 34.9% year-to-date, up from 31.3% a year ago.
Christopher Macgowan , chief executive of SMMT, said: “The record volumes of the last few years are well behind us. Consumers and manufacturers alike are feeling vulnerable and we don’t see any respite in the short to medium term.
We are hoping demand will stabilise over the next year and we will once again see a return in consumer spending. However, as the last seven months have shown, times are tough and the motor industry is feeling the pinch.”
