The car scrappage scheme continues to boost car registrations as sales rose 6.0 per cent in August, the latest figures from the Society of Motor Manufacturers and Traders (SMMT) reveal.
The second successive month of growth within the motor industry, August's sales of 67,006 vehicles build on the 2.4 per cent growth in the market during July.
Registrations from private buyers and of small cars were again up strongly in August as the scrappage incentive scheme continues to influence the market.
The mini and supermini segments once again showed surging growth, up 252.8 per cent and 16.9 per cent respectively in August. Sports and dual purpose segments also recorded strong growth, up 25.8 per cent and 10.1 per cent respectively, in the month.
Green cars dominated the top selling models, the frugal Ford Focus was the best selling model in August, ahead of the Fiesta and Hyundai i10. Ford's Fiesta still remains the best seller over the year-to-date. �
The boost in sales is good news for the industry as it heads into the key month of September and introduces the new '59' plate, yet more is needed to ensure the continuing health of the new car market, the SMMT, the association which represents carmakers explains:
"The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead. It is essential that these early signs of recovery are sustained into 2010," said Paul Everitt, SMMT chief executive.
However the market performed better than the SMMT had expected in August, turning a forecast 6.0 per cent decline into a 6.0 per cent increase. Most of the increase is largely proportioned to the impact of the scrappage scheme, borne out by the growth in private demand and for small, predominantly petrol, cars. In fact demand from the private sector rose by 50.5 per cent in August, albeit on a weak 2008 performance.
Despite growth, the 2009 August market was still over 10,500 units below the 2007 outturn and 15.0 per cent off the 78,800 market averaged between 1999 and 2008.
August typically accounts for just 3.3 per cent of annual new car registrations. September, with the plate change, accounts for an average of 17 per cent of the market. The recent success of the scrappage scheme suggests volumes should rise from last year's very weak showing.
Despite strong performance in July and August, car registrations over the first eight months of 2009 remain down 21.5 per cent or 315,014 units, and over the past 12 months volumes have fallen by 530,125 units.
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