2:25 am, July 7, 2011
NEW car registrations were down 6.2 per cent in June, the latest figures from the SMMT reveal.
183,125 cars were sold in the month, and the SMMT says the market is still in line with its expectations of 1.9m units this year.
‘June new car registrations continued to perform in line with industry expectations with robust demand in the fleet sector and a relatively weak retail market.
‘The balance of demand makes this a tough time for vehicle manufacturers and their dealer networks,’said Paul Everitt, SMMT chief executive.
‘Slow, but steady economic growth in the second half of the year should see volumes increase, although the overall market is still expected to be around 1.93 million units.’
Fleet volumes performed well in June, growing by more than two per cent, but the retail market declined by 22.7 per cent in the month.
Sue Robinson, RMI director, said: ‘The fleet market has performed well, however the retail market is still showing weakness highlighted by the months poor registration performance in this sector.
‘The market reflects the still weak consumer confidence caused by inflation; job uncertainty and Government spending cuts. To have a major positive impact on consumer buying, a return of consumer confidence is vital.
‘Dealers need manufacturers to support the market and encourage customers to return to the showroom. There is a need for marketing and incentives that are attractive to the consumer, particularly where the consumer may save money by replacing an older, fuel hungry and less reliable vehicle.’
