Car Market Stabilises and New Car Registrations Increase
The Society of Motor Manufacturers and Traders (SMMT) announced yesterday that new car sales for October 2011 showed an increase of 2.6% over sales during the same month of 2010. New registrations in October amounted to 134,944.
The increase was mainly driven by a strong recovery in the market for small cars. In fact, sales of so-called "super-minis" such as the Vauxhall Corsa and Ford Fiesta increased 17% compared to October last year.
It comes as no surprise, therefore, that the two models were the top sellers in October. Britons bought 6,300 Corsas and 7,308 Fiestas last month - a clear indication that affordable cars could indeed combine to stimulate an otherwise sluggish market.
The Chief Executive of the SMMT, Paul Everitt, said that the increase in sales was a "positive result despite the uncertain economic climate."
Looking at the bigger picture though, it becomes clear that everything is not quite back to normal yet. For the first ten months of this year sales are still significantly lower than for the same period last year. One has to keep in mind, though, that last year's figure was influenced by the Government's car scrappage programme.
For the period of 1st January to 31st October 2011 sales totalled 1,688,038, which is 4.5% lower than sales in the same period in 2010.
The SMMT expects sales of about 1.92 million for 2011 and 1.96 million for 2012 - both lower than the 2.03 million we saw during 2010.
Author - Louise Hutchinson