October new car sales rose 2.6 per cent

New car sales in the UK rose by 2.6 per cent in October, compared with the same month of the previous year. The boost in the registration of new vehicles came as a surprise to the industry, with the increase almost 7 per cent -or nearly 9000 vehicles- higher than that forecasted by the Society of Motor Manufacturers and Traders (SMMT).

October’s improved market means that registrations over the last three months have increased by 0.9 per cent versus 2010. However the market remains supressed compared to pre-recession levels, with October’s market down nearly 20 per cent compared to 2007 levels.

"October’s new car market rose 2.6 per cent on last year – a positive result despite the uncertain economic climate," said Paul Everitt, SMMT Chief Executive. "Vehicle manufacturers and their dealer networks are working hard to offer consumers value for money through improved fuel efficiency, low running costs and innovative finance. We expect market conditions to remain challenging and hope the Chancellor’s Autumn Statement later this month will help to boost economic growth and consumer confidence."

Registrations in October were buoyed by a sharp recovery in the small car markets, with the Supermini segment up 17.4 per cent and the Mini segment up 4.7 per cent. The Dual Purpose segment also rose on the back of new model launches.

The Ford Fiesta was the best selling model in both October and over the year-to-date. The VW Golf was the best selling diesel model in October. Demand for diesel and alternatively fuelled cars was stable during the month, whilst petrol cars – helped by growth in small car segments – picked up.

SMMT’s sales data also showed that the fleet market grew in the month, while the fall in private car sales was less pronounced than in previous months.

The market now remains on track to achieve SMMT’s full year forecast of 1.923 million vehicle sold in the UK. The market is expected to be stable in 2012, at 1.96 million units.

Author: Faye Sunderland, November 4th, 2011
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