Despite record December registrations up 8.7% on 2004 to 156,866 units, the 2005 UK new car market ended down 5% on 2004 at 2,439,717.

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Diesel registrations totalled 897,887 for the year and rose 40.6% year on year in December alone.


“Despite a tough 12 months, a record December has seen us through to a respectable year-end total”, said Society of Motor Manufacturers and Traders chief executive Christopher Macgowan.


“December diesel registrations boosted the total as company car drivers took advantage of the 3% tax waiver before the end of the year. However, the economic slow-down in 2005 hit showrooms, and we expect 2006 to be another tough year for the industry. Dealers will continue to fight hard for every sale.”


“This is the first time since 2001 that sales have fallen below 2.5 million,” said Retail Motor Industry Federation (RMIF) franchised dealer director Sue Robinson.

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She added: “The decline in the market is not insignificant. Retailers say the main reason seems to be nervousness on the part of the consumer: the fall is mainly from private buyers.


“This mirrors the high street experience over the past few months – interest rate rises in 2004, increasing taxation and a general feeling of insecurity are all playing a major part.


‘Some good news is that December shows record registrations of 156,866 units, up 8.7 per cent on 2004, with diesel registrations rising a massive 40.6*. These are hopeful signs that the industry can continue to hold its nerve – despite tough trading conditions.


“Overall, putting the figures into context, 2006 is unlikely to fall below the two million mark, which is seen as a watershed.  It should also be noted that the UK remains the second largest market in Europe.”