New car sales down nearly 12% on the year
New car registrations fell by 11.5% from a year ago to 128,811 in January, according to the Society of Motor Manufacturers and Traders
The Society of Motor Manufacturers and Traders today called on the government to freeze fuel duty in the March budget, to reduce pressure on motorists who already face soaring petrol prices.
New car registrations fell by 11.5% from a year ago to 128,811 in January, according to the SMMT. The decline was in line with its forecast and, in part, reflects the end of the government's scrappage incentive scheme. Sales would have been up 8% if cars sold as a result of the scrappage scheme were not included.
"This marks the beginning of a challenging year for the UK motor industry," said Paul Everitt, SMMT chief executive. "Consumer confidence is low and it is important that government uses the March budget to help relieve some of the financial pressure on motorists by freezing fuel duty, while providing stability and certainty on motoring taxes. Despite the challenging conditions, the demand for low CO2 emitting and highly fuel efficient cars continues to grow."
The market share for cars with CO2 emissions under 100g/km continues to increase as consumers buy cleaner cars, rising by over 65% in January.
The Ford Focus was the best-selling car, with 7,582 sold last month, followed by the Ford Fiesta at 5,844 and the Vauxhall Astra at 4,510.
Sue Robinson, franchised director at the Retail Motor Industry, said: "The start of 2011 is proving challenging with consumer confidence low as household budgets are being squeezed by VAT rises, fuel price increases and price inflation for most household goods. Furthermore, consumers are still concerned about job security with public sector cuts only just filtering through.
"Looking forward, we believe consumers will return to showroom once they have more confidence and security. Manufacturers are responding to market conditions offering a wide range of incentives to encourage consumers to! buy, ma king it an extremely good time to buy a new car."
She said that with rising fuel prices and falling disposable incomes, consumers will be looking for cost effective cars. Smaller, fuel-efficient cars with extended warranty periods and low maintenance costs are likely to be popular.
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