Automotive market flat for February but looks for a lift in March

New car registrations fell 2.5% in February to 61,868 units, leaving the market flat over the first two months of 2012. Paul Everitt, chief executive at the Society for Motor Manufacturers and Traders (SMMT), said the February new car market was broadly in line with industry expectations. "The March market will provide a much better indicator of industry health than the relatively low volumes traditionally seen in February," he added. David Raistrick, UK manufacturing leader at Deloitte, said the March registration results would be critical to the industry and, with several new models recently launched and competitive pricing, it was shaping up to be a positive month. Anecdotal evidence of more customers visiting forecourts was supported, he said, by research from Deloitte's automotive research team, which indicated increased internet activity around both new and used car sales. Looking at the used car market more generally, Raistrick believed that used car buyers were moving slightly down the value chain to part exchange their vehicles for newer, used vehicles with a slightly older age or lower value than previously. "According to the NFDA, we are now seeing an increasing number of buyers who would previously have bought a new car instead opt for a nearly new vehicle," he added. SMMT forecasts the full year market to be 1.92 million units, just below last year's 1.94 million units. The Ford Focus (pictured) was the best selling model in February, ending an 11-month run at the top for the Ford Fiesta.