UK new-car sales fall 22 percent in October 2010, SMMT reports

Article by Christian Andrei, on November 6, 2010

New-car sales in Britain dropped by 22% in October compared to a year ago when demand was artificially boosted by an incentive scheme, according to the Society of Motor Manufacturers and Traders.

As a whole, sales in 2010 are on course to increase by 1.5% compared to last year. The SMMT estimates that there will be more confidence and demand in 2011 on the back of "slow but steady" economic growth.

CEO Paul Everitt said that there was a “significant fall in October's new car registrations,” indicating the effect of the Scrappage Incentive Scheme last year as well as a weakening in consumer confidence.

He added that total new car registrations in 2010 are estimated to be 2.026 million units, 1.5% up compared to 2009. The scrappage scheme, which is jointly funded by the government and industry, gave motorists 2,000 pounds to trade in cars more than a decade old for more fuel efficient models.

The scheme ended earlier this year. The UK auto industry is bound to face some challenges in 2011 when sales tax increases to 20% from 17.5% and when government measures start to make an impact.

Howard Archer, economist with IHS Global Insight, said that it’s likely that a portion of the car sales will be brought forward in the last two months of 2010 from 2011 as purchasers aim to beat the rising of the Value Added Tax. [via autonews - sub. required]

Topics: uk, sales

If you liked the article, share on:


Login or Create new account to add a comment!


Wondering what the Fantasy Gift in Neiman Marcus’ annual Christmas Book this year could be? If you are generous enough to give others or yourself this special present, then behold...
by - October 24, 2016
It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016