New car sales decline 7 per cent in February

Registrations of new cars in the UK fell for the eight consecutive month, down 7.7 per cent in February to 63,424 new cars sold.

The fall in registrations was less than expected and was boosted by demand from business fleets according to the Society of Motor Manufacturers and Traders (SMMT), which releases the details of new vehicle registrations today.

SMMT has predicted a downturn in the market caused by the withdrawal of the Scrappage Scheme which bolstered last February’s results. Furthermore, a wider economic troubles have impacted on consumer confidence, reducing the appetite for new cars especially among private buyers.

Over the first two months of the year, registrations of new cars are now down 10.2 per cent, with the Society expecting the first six months of 2011 to be down by 8.3 per cent before a recovery is predicted for the latter half of the year. 

"The UK motor industry is looking for a strong March market to help boost confidence and kick start demand for the new 11-plate. February new car registrations were better than expected and whilst below 2010 levels, they were significantly ahead of 2009 and on an improving trend," said Paul Everitt, SMMT Chief Executive. "This month’s Budget will be critical in determining consumer and business confidence and the ongoing stability of the market. We’re looking for certainty on motoring taxes, a freeze on fuel duty and measures that support business investment and access to finance and credit."

On a positive note, the 7.7 per cent fall was the smallest decline recorded over the last eight months . The February outturn was 6.0 per cent above SMMT’s forecast for the month. February is a very low volume month, just ahead of the registration plate change in March. Fleet volumes recovered in February, up 8.6 per cent  making up for a decline in private demand. The Volkswagen Golf was the best seller in February, with the Ford Focus number one over the year-to-date, reflecting growing demand from fleets and businesses.

Author: Faye Sunderland, March 4th, 2011
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