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WMS

New car sales drop in 2009

new-car-sales-2009-positiveNEW car sales finished 2009 down 6.4 per cent - but in December sales were up 38.9 per cent.

The figures are a big advance on the worst-case scenario estimates by some at the start of the year.

Totals as low as 1.6 million were spoken of by some – so the SMMT is relatively pleased with the year-long tally. However, as it points out, new car sales are still below 2008’s 2.13 million levels.

New car registrations rose in December to 150,936 units. Full year registrations were down 6.4 per cent to 1,994,999 units, the lowest level since 1995.

‘The December new car market was boosted by the Scrappage Incentive Scheme and consumers looking to avoid January’s VAT increase,’ said Paul Everitt, SMMT chief executive.

‘The 2009 market of 1,994,999 new car registrations was significantly above early expectations and reflects the positive impact of the scheme, due to end in February.

‘Another tough year awaits the UK motor industry in 2010, with new car registrations expected to be below 2009 levels and only limited recovery in the van and heavy commercial vehicle markets.

‘Sustaining the progress made in the latter part of 2009 will require stronger demand from fleet and business buyers, alongside the greater availability and affordability of credit and finance.’

The middle of the noughties saw annual sales regularly nudge 2.5 million. Even so, many financial experts are saying the sales figures suggest the UK economy is taking a turn for the better.

There was further good news in emissions of new cars. The average new car CO2 figure now stands at 149.5g/km, making new cars sold in 2009 the cleanest on record.

What’s your reaction to the SMMT’s big new car sales announcement?

UK new car production up

SMMT PBR welcome

Scrappage passes quarter-million

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