New car registrations in the UK declined by 8.9% over last year in the month of September according to figures released by the SMMT. The SMMT described the latest market numbers as ‘expected’.
The SMMT noted that the decline in September sales (at 335,246 units) needs to be seen against a scrappage-fuelled 2009. Overall, the UK car market remains up 7.8% over the year-to-date, at 1,635,659 units.
Go deeper with GlobalData
The SMMT also said that full year 2010 car sales are expected to hold at two million, up marginally on 2009.
“Despite an 8.9% fall in September registrations, demand for new cars has stabilised and will end 2010 slightly up on last year,” said Paul Everitt, SMMT chief executive. “It is important that alongside government’s austerity measures, the comprehensive spending review signals a strong growth agenda to boost consumer and business confidence.”
The September market for the new ‘60’ plate cars (the UK’s new car registration plates change for six monthly year identifiers twice a year – in March and September) was 1% better than SMMT had predicted in July, but was still the second lowest volume for the month since 1999 when twice yearly registrations were established.
The SMMT also said that the outlook remains cautious, with the UK Government’s austerity measures likely to unsettle consumer and business confidence. The VAT rise, due in January 2011, could modestly affect the timing of demand towards the end of the year, the trade body said.
The Ford Fiesta was the best selling model in September and the year-to-date, though small car demand has waned in recent months since the end of scrappage.
From the car retail sector, Sue Robinson, Director of Franchised Dealers at RMI, noted that car dealers have ‘observed a reduction in showroom footfall as consumer confidence remains fragile’.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Furthermore, pre-registration by manufacturers keen to maintain market share, is failing to boost the market, and these manufactures should be encouraged to support the new car sales market in a constructive fashion to aid recovery of the industry,” she said.
However, the RMI said the following three months may yield improved sales, as consumers consider purchasing and visiting showrooms before the planned 2.5% VAT rise in January.
David Raistrick, automotive partner at Deloitte, struck a downbeat note.
“The enticement of new plates has failed to deliver the much needed boost for the automotive industry,” he said.
“This year has proved incredibly challenging for the industry with demand cooling off following the end of scrappage. Based on its performance so far this year, the new car market will be hard-pressed to exceed the two million unit mark.”
But Raistrick echoed industry hopes of a mini surge in sales at the end of the year.
“We might see an increase in figures in the lead up to the New Year, as consumers look to purchase new cars before the VAT rate goes up on the 4th January,” he said.
