1:03 am, June 6, 2011
MAY saw new car sales fall by 1.7 per cent the latest figures by the SMMT published today reveal.
150,431 cars were registered in the month, with the market just 1.7 per cent or 2,664 units down on May 2010.
Registrations over the first five months of 2011 were down just 7.3 per cent to 846,513 units.
‘New car registrations for May were down just 1.7 per cent on 2010 levels, with strong performances in the fleet and business sectors,’ said Paul Everitt, SMMT chief executive.
‘Consumers remain cautious, but with significantly improved fuel economy, service plans and more affordable finance, there is great value on offer across the market.
The SMMT says the market is on track to achieve full year forecast of 1.93m units, although ‘economic setting remains uncertain.’
Fleet and diesel volumes also performed well in May, growing by more than ten per cent.
Sue Robinson, director of the RMI National Franchised Dealers Association, said: ‘Great performances for the fleet and diesel sectors which helped to boost the May new car market. However consumers still have a lack of confidence to buy big ticket items such as new cars and this is causing some weakness in retail car market.
‘That said, with significant offers with areas such as service plans and finance, there is considerable incentive for consumers and businesses alike to purchase new vehicles.
‘We anticipate much greater improvement to the market at the back end of the year which we believe will continue into 2012 when the market will be much stronger.’
