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59 licence plate boosts new car sales

10:46am GMT, Tuesday, 6 October 2009

The UK car market received a boost in September with the new 59 plate vehicles going on sale. The UK car market received a boost in September with the new 59 plate vehicles going on sale.

According to the Society of Motor Manufacturers and Traders (SMMT), sales of new cars rose by 11.4% in September compared with the same month last year.

A total of 367,929 new cars, with the new 59 licence plates, were sold during September 2009, which is the third consecutive monthly rise in new car registrations.

The 11.4% increase was much larger than the 2.5% growth many analysts had predicted, after a weak 2008 performance.

The latest data from the SMMT shows that the scrappage incentive scheme has provided some stimulus for growth in recent months.

The car scrappage scheme was launched by the government on 18 May and offers car owners £2,000 to scrap cars older than 10-years-old for a new car. The £2,000 will be paid jointly by the government and the automotive industry.

Paul Everitt, SMMT Chief Executive, said: “Market conditions remain challenging with demand being underpinned by the extremely successful scrappage incentive scheme.

“The extension of the scheme will help to sustain demand through the latter part of this year and into 2010. This will allow economic recovery to strengthen and safeguard valuable industrial capability.”

September is likely to be the largest month of sales in 2009 according to the SMMT, accounting for almost 20% of annual volumes.

The small car continues to sell well as people downsize cars to save money in petrol and road tax. Mini car volumes were up 195% in September and superminis were up 21.2%.

The Ford Fiesta remains the best selling model in the month for the seventh time in 2009.

Categories:
Business, Finance, Manufacturing, Retail
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