New car registrations down 4.4% in 2011, 2012 expected to be flat

The car industry reported that new car registrations fell 4.4 per cent in 2011, with new car demand totalling 1,941,253 units in 2011. That said the total was ahead of the 1.92 million forecast. The SMMT, which collates national registration statistics projected that 2012 will be “broadly flat.” Nevertheless a firmer recovery expected in 2013.

Registrations in December fell by 3.7 per cent to 119,188 units and the market was down 1.8 per cent in the fourth quarter. Sales were once again driven by the business and fleet sectors. Diesel and alternatively fuelled cars both took record market shares over the year. Average new car CO2 emissions fell to a new low of 138.1g/km in 2011, down 4.2 per cent on the 2010 level.

“2011 proved to be a challenging year for the UK motor industry. Total new car registrations were slightly ahead of industry expectations at 1.94 million units, still down 4.4% on 2010,” said Paul Everitt, SMMT chief executive. “Weak economic growth will make trading conditions tough in 2012, but record numbers of new and updated models, significantly improved fuel efficiency and exciting new technologies will help to encourage consumers into showrooms. Business and consumer confidence will be the key to a successful year, so it will be important that government delivers on its growth strategy and helps to resolve instability in the Euro Zone.”

 Source: SMMT

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