Motor Trader The award-winning and longest running UK magazine for car retailing professionals. Your first stop for News, Jobs and Reports for the motor industry.
New car registrations rose 38.9 per cent to 150,936 units in December 2009 as consumers flocked to showrooms to avoid January’s VAT increase but year-end sales fell to under 2 million.
Full year registrations, however, despite the introduction of the scrappage scheme in mid-May, were down 6.4 per cent to 1,994,999 units, the lowest level since 1995, according to figures released by the SMMT. Since its introduction, the scrappage scheme has accounted for over a fifth of all new car registrations and is estimated to represent 20.8 per cent of the December market.
Pundits will now be looking to see whether sales will fall off in the first quarter of 2010.
Average new car CO2 emissions fell by 5.4 per cent on the 2008 level to 149.5g/km in 2009, aided by the scrappage scheme.
“The December new car market was boosted by the Scrappage Incentive Scheme and consumers looking to avoid January’s VAT increase,” said Paul Everitt, SMMT chief executive.
Earlier expectations
“The 2009 market of 1,994,999 new car registrations was significantly above early expectations and reflects the positive impact of the scheme, due to end in February.
“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,” he continued.