Scrappage Scheme Takes Car Sales Above 2009 Forecast To Almost 2m

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Thu, 07 Jan 2010

New car sales in the UK reached almost 2 million last year, exceeding the revised forecast of 1.92 million vehicles but down 6.4 per cent on the 2008 total of 2.18 million sales.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed that 1,994,999 vehicles were sold in 2009 - the lowest annual level of registrations since 1995.

However, SMMT chief executive Paul Everitt said the yearly figure was "significantly above early expectations", thanks largely to the introduction of the car scrappage scheme and a surge in sales during December as consumers looked to avoid January's VAT increase.

The car scrappage scheme, which offers motorists a £2,000 discount off the price of a brand new vehicle when they trade in their old car or small van, has accounted for more than a fifth of all new car registrations since its introduction last May.

According to the SMMT, new car sales rose by 21 per cent in the second half of 2009 following 15 consecutive months of falling registrations .

But there are now concerns that sales will begin to fall once the "cash-for-bangers" scheme comes to an end next month, with motorists already suffering from rising fuel prices and an increase in VAT .

Mr Everitt added: "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 ."