SMMT satisfied with new car registration 7.7% February decline

While new car registrations dipped in February 2011 compared with February 2010, the Society of Motor Manufacturers and Traders said the returns represented less of a drop than had been expected, given that the previous year had been boosted by the government’s Scrappage Incentive Scheme. The first two months of 2011 have seen 192,235 units registered, down 10.2 per cent. While the decline in registrations was the eighth straight month in negative figures, the 7.7 per cent drop represented the smallest drop in this time period. This was thanks mainly to fleet demand, which grew 8.6 per cent. The executive, luxury saloon, sports car and MPV segments continued to show “double-digit growth”; diesel cars took more than 50 per cent of the market.

“The UK motor industry is looking for a strong March market to help boost confidence and kick start demand for the new 11-plate. February new car registrations were better than expected and whilst below 2010 levels, they were significantly ahead of 2009 and on an improving trend,” said Paul Everitt, SMMT chief executive. “This month’s Budget will be critical in determining consumer and business confidence and the ongoing stability of the market. We’re looking for certainty on motoring taxes, a freeze on fuel duty and measures that support business investment and access to finance and credit.”

The new registration figures over the first six months of 2011 are expected to be down by 8.3 per cent before picking up in the latter half of the year. The shorter February typically accounts for just 3 per cent of annual sales, also because it falls immediately before the March plate change.

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