Wednesday, October 21, 2009

Sales of new cars increase 11.4 percent

Sales of branded new cars in Britain increased by more than 11 per cent last month, providing clean evidence of the motor industry's recovery from recession, new figures showed today.

There were 367,929 new car registrations in September 2009 which is 11.4 per cent more than the same month a year ago, as motorists sustained to take advantage of the scrappage scheme, in which they receive a £2,000 discount on vehicles more than 10 years old when they purchase a new model.

According to “The Society of Motor Manufacturers and Traders” (SMMT), today's figures showed the third monthly increase in a row after an increase of 6 per cent in August 2009 and 2.4 per cent in July 2009.

Chief executive Paul Everitt alleged: "Market conditions remain challenging with demand being underpinned by the extremely victorious scrappage incentive scheme.

"The extension of the scheme will help out to sustain demand throughout the latter part of this year and into 2010 and this will allow economic recovery to strengthen as well as safeguard valuable industrial capability."

September is a significant month for the car industry, with a new registration plate and sales worth more or less a fifth of the annual total.

Car transport
The Society of Motor Manufacturers and Traders (SMMT) reported that, about 1.5 million new cars have been sold in the year to date, losing 15.5 per cent on the same period last year.

Sales of private cars drove last month's increase, whereas fleet and business sales were mutually down. Fleet sales were 13 per cent lower than a year ago also by 25 per cent in the year to date, whereas business sales were 11 per cent down on the month and 29 per cent on the year to date.

The top 10 best-selling models in the previous month were the Ford Fiesta (22,635 sales), Vauxhall Corsa (16,379 sales), Ford Focus (13,622 sales), Vauxhall Astra (13,190 sales), VW Golf (11,787 sales), Peugeot 207 (9,161 sales), Mini (8,634 sales), BMW 3 Series (7,465 sales), Toyota Yaris (6,896 sales) and BMW 1 Series (6,671 sales).

The Ford Fiesta is the top-selling car in the year to date with sales of 92,580, followed by the Focus (73,864 sales), Corsa (67,955 sales), Astra (49,242 sales) and Golf (43,611 sales).

The Society of Motor Manufacturers and Traders (SMMT) said the car scrappage scheme sustained to boost up the market. Modest growth of 2.5 per cent had been forecast for September; however the scrappage scheme has been credited with boosting sales in recent months.

According to the Society of Motor Manufacturers and Traders (SMMT) , the week's proclamation by Business Secretary Lord Mandelson of an extension toward the scrappage scheme from £300 million to £400 million was an "extremely important decision" that would give more consumers the chance to buy a new car.

The sales of private cars rise by 41.3 per cent last month also year-to-date volumes are now within 1.9 per cent of last year's level, said the Society of Motor Manufacturers and Traders (SMMT).

Demand for little cars continued to grow, while alternatively fuelled vehicle registrations rose by 45 per cent in September 2009, due to new models.

Vehicle transport

The Ford Fiesta has been the top-selling model for 7 months in a row.

According to AA president Edmund King: "The boost up of new car sales is not just useful to the economy and employment but will also be a boost to the environment and road safety as the vast majority of cars bought beneath the scrappage scheme are cleaner, greener as well as safer than those they have replaced."

RAC motoring strategist Adrian Tink said: "Today's figures are a greeting sign for manufacturers as well as motorists alike. The scrappage scheme has clearly had some victory in driving sales and its extension will allow another 100,000 motorists the possibility to buy a cleaner, safer, more reliable car.

"Still, it remains to be seen how the industry will be impacted once the extension to the scheme ends, and as soon as VAT returns to 17.5 per cent in January."

No comments: