4:32 am, December 6, 2011
NEW car registrations fell 4.2 per cent in November, the latest figures from the SMMT reveal.
134,027 cars were registered in the month but was some 5,000 above forecast, and the market looks set to better full year forecast of 1.923m units.
‘While the November new car market saw a 4.2 per cent dip, the fuel efficiency of new models broke all records with the average new car achieving 52.5mpg,’ said Paul Everitt, SMMT chief executive.
‘Despite the Chancellor delaying the 3p rise in fuel duty, our cost of fuel is still among the highest in Europe, so customers are sure to welcome the 29.3 per cent improvement in new car fuel efficiency over the last 10 years, a demonstration of industry’s commitment to delivering good value to motorists.’
‘The decline in the retail market highlights the current lack of consumer confidence,’ said Sue Robinson, director of the RMI.
‘While the economy remains fragile and the European debt crisis continues to affect stability, consumer confidence remains very low. Many consumers are finding their finances very constrained due to inflationary pressure on house hold bills. Those who do have money to spare are putting off larger purchases until there are signs that the economy is starting on a road to recovery.
‘In previous months the strong fleet market ensured the new car market remained stable. However we predict that new registrations in this sector will begin to fall and continue into 2012 as businesses have now caught up with their change cycle having delayed purchasing during 2009/10.
‘The NFDA 2012 forecast for the new car market, in conjunction with Deloitte, suggests that the total number of new car registrations for next year will be in the region of 1.84 million.’
David Raistrick, UK manufacturing industry leader for Deloitte, said: ‘As we predicted, November’s new car registration figures are down 4.2 per cent as consumer confidence continues to fall.
‘While the market remains subdued, with only 134,027 new registrations in November, this is slightly better than may have been expected. This decrease does not come as a surprise to the industry, as various factors have been contributing to a fall in new car buyers’ confidence. While retailers are certainly feeling this decline, fleet sales continue to perform well.
‘Taking into account various economic and environmental factors; our work, in conjunction with the NFDA, suggests that total new car registrations for 2012 will only reach 1.84M, and could even fall as low as 1.80M. In the retail marketplace I believe there will be a levelling off of sales both in new and used car sales. This follows a decline in used car sales from just under 7.5M in 2007 to a predicted 6.78M for 2011.’
