New Car Registrations up 13.5% in May, SMMT Predicts Decline

UK new car registrations rose 13.5 per cent in May (compared with May 2009), the 11th successive monthly rise. 153,095 cars were registered in May compared with 134,858 in May 2009. Broken down by the two main channels, the results are particularly positive in the fleet sector, which reported a 16 per cent increase compared with a 12.3 per cent in the private market.

Volumes over the first five months of the year have risen 22 per cent. According to the SMMT, the growth reflects the weakness of the 2009 market, with May volumes still 14.6 per cent or 26,177 units down on the 2008 level.

Automotive manufacturers association SMMT predicted that this generally good news is the prelude to a “very challenging” decline following the end of the scrappage incentive scheme. As a result full year registrations are also expected dip slightly.

Source: SMMT   

Ford’s Fiesta was knocked off the best selling model list for the first time this year, by the Ford Focus. Growth in mini and supermini cars cooled in May, reflective of the rate of gain in previous months. Other segments posted recovery on weak 2009 levels.

“May was another good month for the UK new car market, although we expect the coming months to be extremely challenging,” said Paul Everitt, SMMT chief executive.  “It is essential that the upcoming emergency budget promotes consumer and business confidence to maintain economic recovery.”

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