New car sales rise in 2010 but tough 2011 predicted for auto industry
SALES of new cars rose by 1.8% in 2010 but the last minute rush by consumers to buy vehicles ahead of this month’s VAT rise failed to materialise as sales dropped 18% in December compared with 2009, latest figures show.
The 2010 new car market rose by 35,847 units to 2.03m, the Society of Motor Manufacturers and Traders said.
The fleet sector led the way with a 10% increase on 2009 but private volumes slipped following the end of the Government’s scrappage incentive scheme.
However, the SMMT has forecast a difficult year ahead for manufacturers and has predicted a 5% decline in the market during 2011, with the first half proving especially tough.
Paul Everitt, SMMT chief executive, said: “Economic conditions remain extremely challenging, but industry expects demand to strengthen in the second half of the year.
“Competition in the retail sector will intensify as the industry seeks to re-balance demand across its new and used car and service and repair business.”
Last month’s disappointing figures could have been influenced by the bad weather, with motorists unable to get out to showrooms.
Among the leading manufacturers, Jaguar Land Rover saw a year of mixed fortunes.
The iconic 4x4s continued to defy pundits’ predictions of a decline in the sector due to rising fuel prices, with a near 28% increase in sales year-on-year.
By comparison, stablemate Jaguar was down almost 10% on 2009, despite the launch of the new flagship XJ model and the continuing success of the award-winning XF.
Ford maintained its dominance of the market claiming first and third places in the year’s best sellers with the Fiesta and Focus respectively.
The two were split by Vauxhall’s Astra, while its Corsa range came in fourth, ahead of the VW Golf and Polo, Peugeot’s 207, the BMW 3-series, the Mini and Nissan Qashqai.
The growth in fuel-efficient diesel engines saw the oil-burners increase market penetration to 46.1% – a new high for the UK.
BMW, which manufactures 3-series diesel engines at its Hams Hall plant, saw its sales rise almost 11% year-on-year. The popularity of the Mini was also undiminished with a year-on-year increase of more than 10%.
Ford claimed the largest market share at 13.8%, although this was down from 15.86% in 2009. Vauxhall was its nearest rival, seeing its share of the market rise from 11.9% to 12.1% year-on-year.
In the luxury sector, Bentley could claim to be top dog with a 30.5% year-on-year increase in sales. By contrast, Aston Martin saw an 8.7% year-on-year decline.
Rachel Eade, automotive cluster manager for MAS-WM, said: “The growth figures are encouraging to everyone involved in the automotive sector, especially as they are reinforced on the ground with new business and increasing volumes for West Midlands suppliers. This, as a knock-on effect, represents new jobs and investment in machinery and training.
“Manufacturing business continues to return to the UK, but we must still strive to maintain this momentum by ensuring we offer the right specialist support and that access to finance is made a lot easier for the companies who deserve it.”
