New car sales slump in 2009

Friday 8th January 2010

Almost two million news cars were sold last year, the lowest level since 1995, new figures have revealed.

The Society of Motor Manufacturers and Traders (SMMT) said while the numbers of sales were down, they were boosted in second half of the year thanks to the government's scrappage scheme.

The number of sales drop by 6.4 per cent compared to 2008, totalling 1,994,999.

The figure is considerably higher than early predictions following the disastrous start to 2009 experienced by the motor industry. In December, for example, sales were 38.9 per cent up on those recorded a year earlier.

Since its introduction last May the government's scrappage scheme has accounted for a fifth of all new car sales.

Commenting on the figures, SMMT chief executive Paul Everitt said the yearly stats were "significantly above predictions".

However, there is concern with VAT rising back to 17.5 per cent and the scrappage scheme coming to an end in February 2010 that total sales may drop back below 1.8 million.

"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," Mr Everitt added.

"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."

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