New car sales down 30%
NEW car sales took a further hit in March – and it’s due to the lack of a new car scrappage scheme.
SMMT chief Paul Everitt says the UK being the only European country NOT to have a scrap scheme in place is hurting car sales.
‘March new car registrations are a barometer of confidence in the economy, from businesses and consumers alike. The fall in the market shows that government needs to do more to boost confidence.
‘A scrappage scheme will provide the incentive needed, and the evidence is clear that schemes already implemented across Europe do work to increase demand.’
Whereas new car sales are down 30.5 percent so far in 2009, they are UP 40 percent in Germany – and UP nearly 10 percent in France.
The contrast with Italy makes sobering reading. The sales delcline there mirrored the UK, until the Government introduced a scrappage scheme earlier in the year.
Declines have now been completely stemmed – whereas they continue to fall in the UK.
The evidence of how the UK market is being hit is clear: during the first quarter of 2009, sales were down 29.7 percent.
That’s a decline of over 200,000 new car sales.
It has led the SMMT to predict the 2009 total new car market will fall to 1.7 million sales. March alone was nearly 5 percent below expectations.
Small cars and diesels remained the big winners in the new car market. Diesel now takes 44 percent of the market: up from last year’s figure of 41.9 percent.
Superminis account for 36.6 percent of new car sales. The Mini segment also rocketed up, by a massive 84 percent, as makers rushed out new models to meet the change in buying patters.
Profitable private retail sales also increased significantly - at 50.7 percent, they now outnumber fleet sales.
The SMMT has pinned new car sales recovery hopes on a new car scrap scheme arriving in the Budget, due on 22 April.
By Richard Aucock
SCRAP SCHEME NOW: A call to arms
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Tags: march, new car sales, SMMT
April 7th, 2009 at 7:44 am
This is nutty.
A big reason customers are not buying is because they think they would be stupid to do so if a scrappage scheme is on the cards - and it isn’t.
Yet, you and the SMMT etc, carry on fuelling the public’s greed to wait for one.
Therefore, eCARdealer and the SMMT and others have to take part responsibility in this sales crash.
Ling Valentine
April 7th, 2009 at 4:21 pm
Whether a scrappage scheme is right for the UK isn’t for us to decide - what we’re calling for is an announcement on it either way.
Our Scrap Scheme Now campaign wants to end the uncertainty that surrounds the scheme as it’s this that’s putting buyers off - not a scrap scheme.
If a scrap scheme was announced there is no doubt it would boost sales. It has worked in Germany and we are staunch believers it will work here.
However, what Car Dealer wants is a decision on the scheme to be made as soon as possible.
Every day of delay is causing even more hurt to dealers.
Thanks for your feedback though. It’s really interesting to hear other traders’ opinions.
James, Car Dealer editor
April 7th, 2009 at 4:22 pm
Deputy editor Richard Aucock also put Ling’s comment’s to the SMMT. This is what they said:
‘New car registrations have fallen for the last ten months. While SMMT has been in discussion with government for a vehicle scrappage scheme since October, scrappage has only been in the public domain since February.
‘A scrappage scheme would provide a boost to new car registrations and the industry as a whole and SMMT has discussed with government that such a scheme would need to be implemented quickly so as not to cause consumers to defer sales.’