Sales of new cars rose sharply in December although the total sold last year was at the lowest level since 1995, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The organisation said new car registrations rose by almost 40% in the final month of the year, making December the third best since records began. The SMMT said the government’s car scrappage scheme, which was introduced last May, had been a success, and had helped to reinvigorate the automotive market. The sector went through one of the most severe crises in its history last year.
Despite the boost from the scrappage scheme, full year registrations were down 6.4% on last year to 1,994,999 units – the lowest level for fifteen years. Paul Everitt, SMMT chief executive, said: “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,” Everitt added.
The scrappage scheme is due to end next month.
© PE Publishing, 7 January 2010
