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UK car sales in first rise for 14 months, SMMT says | UK car sales in first rise for 14 months, SMMT says |
(about 1 hour later) | |
New car sales in the UK rose for the first time in more than a year in August, according to the Society of Motor Manufacturers and Traders (SMMT). | New car sales in the UK rose for the first time in more than a year in August, according to the Society of Motor Manufacturers and Traders (SMMT). |
There were 59,346 new cars registered during the month, a rise of 7.3% on a year earlier, while sales of smaller cars rose by a third, the SMMT said. | There were 59,346 new cars registered during the month, a rise of 7.3% on a year earlier, while sales of smaller cars rose by a third, the SMMT said. |
August is one of the quietest months for car sales, ahead of September's launch of new registration plates. | August is one of the quietest months for car sales, ahead of September's launch of new registration plates. |
The SMMT said consumers remained nervous about the economic outlook. | The SMMT said consumers remained nervous about the economic outlook. |
"New car registrations in August rose for the first time since June 2010," said Paul Everitt, chief executive of the SMMT. | "New car registrations in August rose for the first time since June 2010," said Paul Everitt, chief executive of the SMMT. |
"August represents a relatively small share of the new car market and the September new 61-plate registrations will be far more important for the UK motor industry, accounting for about 17% of the full year's registrations." | "August represents a relatively small share of the new car market and the September new 61-plate registrations will be far more important for the UK motor industry, accounting for about 17% of the full year's registrations." |
Sales of small cars in August increased sharply. Sales in the so-called mini segment jumped by more than a third, while those in the supermini category rose 18%. | Sales of small cars in August increased sharply. Sales in the so-called mini segment jumped by more than a third, while those in the supermini category rose 18%. |
The Ford Fiesta remained the UK's best-selling model, with 3,213 sales during the month. | The Ford Fiesta remained the UK's best-selling model, with 3,213 sales during the month. |
Electric sales | |
Thirty-four electric cars were sold in August, compared with 11 a year earlier. The difference is largely due to the government grant introduced in January which gives buyers £5,000 towards the cost of an eligible electric car. | |
For the year so far, 837 electric cars have been sold, 812 of which qualified for the government grant. | |
"Despite the £5,000 incentive and low fuel costs, many potential buyers are put off by the total cost of ownership," said the British Vehicle Rental and Leasing Association. | |
Research by the body suggests that a typical electric car could cost up to £5,000 more to own and operate compared with an equivalent diesel car over a typical three-year, 36,000 mile company-car lifecycle. | |
This higher cost is largely due to the faster depreciation suffered by electric cars and the higher interest payments associated with higher purchase costs, the association said. | |
Despite the rise in overall car sales in August, the SMMT said the outlook for car sales "remains challenging". Registrations for the year so far are down 6.1% on a year earlier at 1,220,618. | |
The body has said it expects car sales to exceed two million in 2012. Registrations hit a peak in 2003, when 2.56 million cars were sold. | The body has said it expects car sales to exceed two million in 2012. Registrations hit a peak in 2003, when 2.56 million cars were sold. |