UK car sales continue downward trend

| November 4, 2010 | 0 Comments

The Society of Motor Manufacturers and Traders (SMMT) has today announced UK car sales fell by 22.2% in October compared with the same month in 2009.

It represents the fourth consecutive monthly fall but was expected due to the withdrawal of the scrappage scheme.

The SMMT said the number of new cars sold in the month was 131,495.

The Society has previously warned that the latter half of the year would be challenging and sales for the full year are likely to fall as a result of the end of the ’cash for bangers’ scheme.

The £400 million initiative, which was launched in May 2009 to boost the ailing car industry, paid drivers of cars at least 10 years old £2,000 off the price of a new vehicle.

However, the scheme ended on 31 March.

The SMMT said further falls are expected for the remainder of the year but it is hoped that the forthcoming VAT increase, scheduled for January next year, might boost sales towards the end of the year.

Commenting on today’s figures, SMMT chief executive Paul Everitt said: “There was a significant fall in October’s new car registrations, reflecting the impact of the scrappage scheme at this time last year and some deterioration in consumer confidence.

“The industry expects the coming months to be challenging with slow, but steady, economic growth feeding through to improved confidence and demand during 2011.”

In other news, the SMMT recently revealed UK car production rose in September.

UK car production rose 5.8% against the same month a year ago, the SMMT said.

For the year-to-date, car production is 35% higher than in the same period last year, the Society added.

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