February 2010 sales grow
March 4th, 2010 by Richard Aucock
SALES figures for February have been released and continue to show a scrappage scheme boost.
The market rose by 26.4 percent compared to 2009, with 68,686 new car sales.
Scrappage accounted for 19.6 percent – making February the 8th consecutive month of new car sales growth, said SMMT chief Paul Everitt.
As much of the increase is attributable to scrappage, he explained, car dealers should thus be wary. Final orders through the scheme must be made by the end of March – meaning the impact will tail off during Q2.
This has led him to warn the new car market is expected to decline in the second half of 2010.
Overall, the SMMT expects the overall new car market will drop by 10 percent in 2010, with total full-year sales of 1.82 million cars.
‘Industry continues to face challenging market conditions, but positive trends in the fleet and business sectors suggest that negative impacts can be minimised,’ said Everitt.
‘Strengthening business and consumer confidence remains industry’s priority. A clear and consistent approach to CO2 based taxation and improved access to affordable credit are essential elements in sustaining recovery in the new car market.
Ahead of the crucial new-car reg month of March, it seems car dealers should start preparing now for a future downturn. New car sales rises such as these will not continue for the forseeable.
What are your first reactions to the ongoing sales rise?
Tags: new car sales, scrappage, SMMT