New car registrations slumped in August in a continuation of the weak trend seen throughout the year so far, the Society of Motor Manufacturing Traders (SMMT) revealed.
In August, new car registrations fell by 6.1 per cent compared with the same month a year ago, following a 4.1 per cent decline in July. Registrations fell each month this year bar May when a 1.1 per cent increase was recorded. The decline in August also outstrips the average fall of 4.3 per cent so far into the year.
SMMT said new car registrations fell to a total of 77,961 units in August.
SMMT said it expects the new car market to reach 2.33 million, a 4.5 pct drop from 2005. It predicts a further 0.6 per cent drop in 2007 to 2.315 million units.
"August has become a quiet month for the new car market," said SMMT chief executive Christopher Macgowan. "However, although fuel prices have fallen recently, the outlook is still clouded by economic uncertainty and the effect this has on consumer confidence."
September is a crucial month for car sales as new number plates are brought in during the month.
Macgowan said, "Despite a subdued market, September is still key. A host of manufacturer-led deals mean there will be plenty of opportunities for motorists to do a deal on the forecourt."
"Although the September plate-change should deliver around five times the volumes of August, it may not be as large as the equivalent March 2006 figure," he added.
He forecasts that 395,000 new cars, worth an estimated 6 billion, will leave showrooms in September.
