UK Car Registrations Total Less than 2 million in 2009

Despite the positive impact of the scrappage scheme the recession led to the lowest annual sales in the new car industry for almost fifteen years. According to data released by the SMMT, full year registrations were down 6.4 per cent to 1,994,999 units in 2009, the lowest level since 1995. New car registrations rose in December by 38.9 per cent to 150,936 units.

What’s worse is that the situation would have ben dire had it not have been for the scrappage scheme backed by both manufacturers and the government. Since its introduction, the scrappage scheme has accounted for over a fifth of all new car registrations and is estimated to represent 20.8 per cent of the December market.

“The December new car market was boosted by the Scrappage Incentive Scheme and consumers looking to avoid January’s VAT increase,” said Paul Everitt, SMMT chief executive. “The 2009 market of 1,994,999 new car registrations was significantly above early expectations and reflects the positive impact of the scheme, due to end in February.
 
“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.  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,” he continued.