Surprise rise in new car sales
NEW car registrations rose by 7.3% during August, reversing 13 months of consecutive decline.
Nevertheless, the Society of Motor Manufacturers and Traders said the results could be anomalous as the outlook for the sector remained challenging.
The society said August was normally one of the quietest months of the year for new car sales. This year it is predicted to be the quietest month of the year in terms of volume – August 2010 accounted for just 2.7% of the final market.
The August 2010 market was the lowest on record – reflecting the end of the scrappage incentive scheme – and despite this 2011 increase, the figure is still more than 20% below the 1999-2010 average for the month.
In the year to date, registrations have fallen by 6.1% and the society said that given the downgrade in economic growth forecasts, the sector was likely to remain challenging.
The SMMT is forecasting registrations for the current year to hit 1.93m units, a 5% decline on the 2010 market and down on the current 1.95m running rate.
Most manufacturers continued to feel the squeeze. Jaguar was down almost a third (32.62%) for the month compared with last year, while stablemate Land Rover fared little better, down 27.15%.
Land Rover will be hoping for a better month in September, which coincides with the launch of its new Evoque model.
Ford claimed the largest market share at 14.41%, boosted by the continued success of its new Fiesta model, although its Focus model slipped to third place, beaten by the Vauxhall Corsa.
Vauxhall was the second largest manufacturer by market share (11.76%) followed by Volkswagen (10.51%). BMW claimed fourth spot, while its Mini business saw one of the largest year-on-year monthly rises (85.79%).
In the luxury sector, Aston Martin declined almost 20% having sold 45 cars during the month compared with 56 this time last year. Bentley fared better, up 44% with 36 sales as opposed to 25.
Sectorwise, the mini segment saw a sales rise of 34.5% and the supermini market rose 17.6% as cash-conscious buyers looked for more fuel efficient models.
Private buyers claimed an increased market share at 41.4% (2010: 40.1%); however, the fleet market was down at 55.6% (2010: 57%).
Paul Everitt, SMMT chief executive, said: “New car registrations in August rose for the first time since June 2010, up 7.3% to 59,346 units. August represents a relatively small share of the new car market and the September new 61-plate registrations will be far more important for vehicle manufacturers and franchised dealers.
“The September new car market is always important for the UK motor industry, accounting for around 17% of the full year’s registrations. Consumers are nervous about the future, but with industry offering unprecedented improvements in fuel economy, competitive finance offers and a wide variety of new models, buyers will find there is something to suit every taste and pocket.”
John Leech, partner in KPMG’s Automotive practice in Birmingham, said the rise was welcome but the sector was bracing itself for what would happen this month.
“September’s plate-change figures are the health barometer of the new car market,” he said.
“Although the SMMT’s full year forecast remains on track, the market is still fragile – manufacturers are recognising this and therefore are offering some great deals in the marketplace to keep consumers buying.
“Despite these home market uncertainties, the growth of Far-Eastern economies such as China and India is likely to continue to sustain the UK’s automotive industry, through its peaks and troughs, for decades to come.”
