The UK car industry received a boost in August, with new-car sales up by 7.3 per cent on August 2010.
59,346 units were sold in the month, representing the first year-on-year rise in car sales for 13 months, but the Soceity of Motor manufacturers and Traders say the outlook for new-car sales remains challenging, with fears over a double-dip recession stil high.
Year-to-date registrations are down by 6.1 per cent on a year ago, with the rise potentially attributable to a drop-off in demand in August 2010 due to the end of the scrappage scheme.
The August market shows recovery from low base, but small volume nature of the market will temper optimism, said SMMT.
Registrations in the first eight months of the year have fallen by 6.1 per cent or almost 79,795 units. Given the downgrade in economic growth forecasts, the outlook for the new car market is set to remain challenging.
SMMT forecasts the full year market to end on 1.93 million units, a 5% decline on the 2010 market and down from the current 1.95 million running rate.
“August represents a relatively small share of the new car market and the September new 61-plate registrations will be far more important for vehicle manufacturers and franchised dealers," said Paul Everitt, SMMT Chief Executive.
August is expected to be the smallest volume monthly new car market in 2011. In 2010 it accounted for just 2.7% of the market. The August 2010 market was the lowest on record and August 2011 registrations were still more than 20 per cent below the 1999-2010 average for the month.
However, a new 61 plate will raise hopes for a stronger September.
“The September new car market is always important for the UK motor industry, accounting for around 17 per cent of the full year’s registrations," said Everitt.
"Consumers are nervous about the future, but with industry offering unprecedented improvements in fuel economy, competitive finance offers and a wide variety of new models, buyers will find there is something to suit every taste and pocket."
Sectors
Private demand grew by 10.7 per cent in August, its first rise since June 2010, while fleet volumes continued to rise. Fleet is up by 3.3 per cent over the first eight months of the year.
Segments
The Supermini segment rose by 17.6 per cent to account for 37.3 per cent of the August market - meaning that more than one in three cars sold is now a Ford Fiesta-style car.
Most segments showed growth in August, with the mini segment (Ford Ka, Renault Twingo) up by 34.5 per cent and the supermini segment (Ford Fiesta, Vauxhall Corsa) up 17.6 per cent showing the strongest gains.
The Ford Fiesta was again the best selling model in the overall new car market in both August and the year to date, with 3,213 and 61,551 sales respectively.
Top ten sales charts for the month and year are dominated by supermini and C-segment (Ford Focus, Vauxhall Astra, Volkswagen Polo) models.
Fuel types
Registrations of diesel cars rose by 4.7 per cent in the month, but their market share slipped from 52.6 per cent last year to 51.4 per cent after stronger growth from the petrol car market in August.
Manufacturers - winners and losers
August was a volatile month for manufacturers - with sales fluctuating wildly across makes. Several executive, luxury or sports brands gained ground in August, with Alfa Romeo, Audi, Bentley, Lexus, Mercedes, MG, Mini and Porsche all posting healthy increases over August 2010.
However, Chevrolet and Chrysler both posted sales increases of over 100 per cent in a generally good month for American marques. Jeep also posted a significant increase over Aguest 2010.
Volume manufacturers such as Fiat, Ford, Hyundai, Kia, Seat, Skoda, Vauxhall and Volkswagen all registered healthy increases.
Abarth, Infinit, Jaguar, Land Rover, Lotus, Maserati, Mazda, Mitsubishi, Proton, Renault, Smart, Ssangyong and Subaru all posted decreases of ten per cent or more.
However, with low volumes in the month, the figures are unlikely to be indicative of longer term trends. The majority of manufacturers have seen sales slide over 2011 in comparison to 2010, when the scrappage scheme was partly in effect.