Car and commercial sales plummet

The new car market was down by 18.6% in August and by 3.8% for the year-to-date while van sales dived 20.7% in August but remained just in positive territory for the year so far. Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said August was traditionally one of the quietest months for the new car market, but this year it was the lowest since 1966 with only 63,225 registrations. “The slow-down in the UK mirrors the difficult conditions being experienced across the main European markets,” Everitt said. “Industry is encouraged by the growing interest in lower carbon cars, but is concerned by the reluctance of consumers to commit to major purchases. There is a clear need for sustained action by government to boost the economy and restore confidence.” In the truck and van market – a sector that reflects the confidence of the business community – August registrations were down 20.7% but up 1.9% to 387,645 for the rolling year. “The economic situation which is slowing spending, means a big drop in van figures,” said Everitt. “In the short term van registrations will continue to struggle, though the truck sector is holding total CV figures close to the three-year average. In the longer term we expect an overall and marked downward trend.”