New Car Sales Increase But Rate Of Growth Slows

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Thu, 13 May 2010

The number of new cars sold in the UK last month rose for the 10th month in a row but at a slower rate than in previous months, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

The SMMT data revealed that a total of 148,793 new cars were registered in April, an increase of 11.5 per cent on the same period in 2009.

However, the figure is less than half the levels of growth recorded in each of the three previous months.

The SMMT said April’s growth was driven by the private sector and by strong demand for fuel-efficient vehicles .

Chief executive Paul Everitt said: "April was another good month for the UK motor industry with private buyers responding positively, despite the end of the scrappage scheme ."

Despite expecting sales in the coming months to fall due to the end of the scrappage scheme, the industry body last week increased its year-end forecast for new car registrations in 2010 following a stronger-than-expected first quarter.

The SMMT now predicts 1.92 million new cars will be sold by the end of the year, compared with its previous prediction of 1.82 million.

Mr Everitt said: "SMMT’s latest forecasts reflect the better than expected results in the first quarter and improving consumer confidence. The coming months will be challenging now that the scrappage scheme has ended, but industry remains cautiously optimistic."

The Ford Fiesta was the best selling car in April, with 6808 new models hitting UK roads, followed by the Vauxhall Astra (6440), the Ford Focus (6279), the Vauxhall Corsa (5945) and the Volkswagen Golf (5828).