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New car sales rise 10.8% in June New car sales rise 10.8% in June
(40 minutes later)
The car industry still expects a tough second half of the year
UK new car sales rose 10.8% in June compared with the same month last year, industry figures have shown, despite the end of the scrappage scheme.UK new car sales rose 10.8% in June compared with the same month last year, industry figures have shown, despite the end of the scrappage scheme.
A total of 195,226 new cars were sold in June, the Society of Motor Manufacturers and Traders (SMMT) said. The Society of Motor Manufacturers and Traders (SMMT) said 195,226 new cars were sold in June, adding that the performance was "above expectations".
In the six months from January to June, there were 1,208,662 new registrations, a 19.9% rise on the first half of 2009.
"The new car market continued to perform above expectations in June," SMMT chief executive Paul Everitt said.
June registrations were boosted by a rise of more than 25% in fleet sales.June registrations were boosted by a rise of more than 25% in fleet sales.
"The results indicate improved business confidence and a strengthening economic recovery," Mr Everitt said. In the six months from January to June, there were 1,208,662 new registrations, a 19.9% rise on the first half of 2009.
"The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery." June last year was the first full month when new car buyers could take advantage of the scrappage incentive.
The scheme, which offered new buyers a £2,000 discount if they scrapped a car that was more than 10 years old, started on 18 May 2009 and came to an end on 31 March 2010.
'Unique' factors
SMMT chief executive Paul Everitt said the figures came as a pleasant surprise.
"Like many, we were anticipating that this would be a difficult month because of the end of the scrappage scheme," he said.
Private sales in June were 3.3% lower than last year.
In addition to the rise seen in the fleet market, the business sector also enjoyed an 18.4% increase in sales.
Mr Everitt added that there were a couple of "unique" factors influencing the rise in these sectors.
"There is some inventory building going on. During the depths of the recession most companies cut back quite a lot on inventory so we're seeing some impact there," he said.
"But also, this time last year there was such a big rush in scrappage scheme vehicles and private vehicles being sold that that crowded out some of the fleet market."