Vauxhall Insignia
There has been some good news for the car industry this month, after the latest figures[1] report a 13.5% increase in car registrations in May compared to the same month last year. This was the 11th consecutive rise in monthly sales, with May orders rising 3 per cent from April.
Despite the Government’s car scrappage scheme coming to a close on March 31st, sales of cars rose to 153,095 from134,858 in May last year, the Society of Motor Manufacturers and Traders (SMMT) said[2]. Many industry commentators predicted the end of the scheme to have dire consequences on the sales of new cars, in particular those who had enjoyed the highest increases in sales whilst the scheme was in effect[3]. Just 2.7 per cent of the cars delivered in May were bought through the scrappage scheme[4].
The top selling cars in May were the Ford Focus with 7,163 units sold, followed by the Vauxhall Astra and the Ford Fiesta, selling 6,734 and 6,619 units respectively[5].
Paul Everitt, chief executive of the SMMT, commented[6]: “May was another good month for the UK new car market, although we expect the coming months to be extremely challenging. It is essential that the upcoming emergency budget promotes consumer and business confidence to maintain economic recovery.”
The leading auto trade association believes that sales are likely to drop later in the year. This view is not shared by Nissan boss Carlos Ghosn, who said[7]: “The year 2010 is going to be a record year for the car industry…Scale is not going to be a problem, our concentration is how you make scale work for you.”
About the author
Charlotte Walker writes for MediaVest (Manchester) on a number of car related topics such as car insurance quotes.
[1] Financial Times (4th June, 2010). Recovery continues in UK car sales. http://www.ft.com/cms/s/0/ddac43e0-6fce-11df-8fcf-00144feabdc0.html
[2] The Telegraph (4th June, 2010). New car registrations tick up 13.5%. http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7143964.ece
[3] BBC News (30th March, 2010). Scrappage scheme comes to an end. http://news.bbc.co.uk/1/hi/business/8595597.stm
[4] Reuters (4th June, 2010). Car sales jump for 11th moth, but slowdown seen. http://www.reuters.com/article/idUSLDE6530IX20100604
[5] Autocar (4th June, 2010). UK’s new car sales rise again. http://www.autocar.co.uk/News/NewsArticle/AllCars/250320/
[6] The Telegraph (4th June, 2010). New car registrations tick up 13.5%. http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7143964.ece
[7] Sunderland Echo (3rd June, 2010). Nissan boss predicts a record year for car industry. http://www.sunderlandecho.com/news/Nissan-boss-predicts-a-record.6339644.jp
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