SMMT warns that UK sales may drop 5% in 2011 due to tax hikes, spending cuts

Article by Christian Andrei, on January 14, 2011

In Britain, new-car sales climbed by 1.8% in 2010 compared to the previous year but according to the Society of Motor Manufacturers, sales may drop by 5% in 2011 due to tax hikes and public spending cuts.

The industry group said that new car registrations were up by nearly 36,000 last year to 2.03 million but this figure was the second-lowest annual total of the past decade. Fleet sales increased by over 10%, but private volumes fell following the end of the government's car scrappage scheme last March.

Howard Archer, economist at IHS Global Insight, noted that in the same way that private sales led car sales earlier in 2010 while the car scrappage scheme was ongoing, this is now “by far the greatest softness.” Archer believes that this is indicative of the “serious pressure that households are under."

In December 2010, new car sales were 18% lower than the same month the previous year. This stands for a sixth straight drop which is probably due to the impact of the scrappage scheme on December 2009 figure.

In addition, potential buyers have stayed away from the dealerships because of the icy weather. This is a compelling reason since last month turned out to be Britain's coldest December on record.

The SMMT stated that over 100,000 cars were registered through the scrappage initiative in 2010, making up about 5% of the total market. The SMMT cautioned that 2011 will be difficult and estimated that car sales will fall by 5% over the year.

Topics: uk, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries