August sales fall 17.5%
September 6th, 2010 by Richard Aucock
SMMT data has revealed a huge 17.5% decline in registrations as dealers are hit by not having scrappage.
55,305 new cars were registered in August 2010.
The SMMT says this compares poorly to 2009, where sales were incentivised by the scrappage scheme – but actually also mark a return to usual patterns seen prior to registration plate changes.
Buyers are once again anticipating a new style plate and are delaying August purchases to get a flash 60-plate.
What’s more, the fall was anticipated, said SMMT chief Paul Everitt – who is also saying the rest of the year is not going to be easy, either.
‘New car registrations were down 17.5% in August and conditions will remain challenging through the rest of the year.
‘The industry enjoyed a better than expected first half of the year and, despite the difficulties, SMMT is forecasting that new car registrations will close just ahead of 2009 figures.’
The August 2010 figures mark the second consecutive month of new car registration falls compared to 2009.
Even so, volumes for the year to date remain up over 13 percent. However, by year end, this is expected to have fallen to 1.2 percent.
Why? Lack of consumer confidence, says RMIF director Sue Robinson.
Uncertainty costing sales
‘This uncertainty amongst consumers, combined with summer holidays and a desire to wait for the new 60 registration plate in September, is likely to continue for the remainder of the year.’
People are waiting for the Government to review its spending and tax policy, to see how it affects them.
‘However, August’s seemingly enormous decline is exacerbated by the strength of last August, when the scrappage scheme was in full flow.’
There will be an upturn, but only of sorts, said Robinson. ‘We expect the market to remain challenging for the rest of the year, although we do expect to see an increased level of activity in the market generated by the impending VAT increase at the beginning of 2011.
‘Therefore, we need manufacturers to support the market, and help dealers, by ensuring vehicle prices remain competitive and offering attractive incentives to buy to consumers.
‘What we do not need to see is manufacturers supporting the market by encouraging large scale pre-registration exercises.’
Robinson also warned dealers to watch out for regional variations – particularly given the threatened scale of public sector job cuts.
Tags: 60 plate, new car, registrations, sales, scrappage, SMMT