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UK car sales bear brunt of the credit crunch

4:09pm GMT, Friday, 5 September 2008

UK car sales fell 18.6% in August to just over 63,000 registrations. UK car sales fell 18.6% in August to just over 63,000 registrations.

UK new car sales slumped 18.6% in August – the lowest figure since 1966, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

During the month, there were 63,225 new vehicle registrations. The Vauxhall Corsa – with 3,527 registrations – was August’s top-selling car, followed by the Ford Focus (2,933) and Vauxhall Astra (2,535).

Sales were particularly poor in the premium brands market, with Aston Martin suffering a 67% drop to just 19 cars sold. Land Rover sales were down 58% to 422 vehicles whilst Jaguar experienced a 41% decline to 422 cars.

The diesel market fell for the second successive month, however its market share improved from 41.4% to 44.3%.

Superminis’ share of the market continued to grow, accounting for 33.8% of sales, compared with 29.1% a year ago, suggesting consumers are increasingly moving over to more efficient models.

In addition, the thirst for more environmentally-friendly cars was further reinforced by the fact demand for alternatively-fuelled vehicles has risen 5.7% year-on-year.

Paul Everitt, SMMT Chief Executive, has called for the UK government to do more to improve consumer confidence. He said: “The slow-down in the UK mirrors the difficult conditions being experienced across the main European markets. Industry is encouraged by the growing interest in lower carbon cars, but is concerned by the reluctance of consumers to commit to major purchases. There is a clear need for sustained action by government to boost the economy and restore confidence.”

For more information on the Society of Motor Manufacturers and Traders or to read the report in full, visit: www.smmt.co.uk
 
By Natasha Piscitelli

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