Cold spell killing off car sales

New figures out today (6 December) from the Society of Motor Manufacturers and Traders (SMMT) showed registrations falling by 11.5% in November to 139,875 units "performing ahead of forecast". SMMT chief executive Paul Everitt (pictured) said: "New car registrations fell by less than expected in November with demand from the fleet sector helping to offset the market rebalancing following the end of the Scrappage Incentive Scheme. Registrations are expected to fall next month, but demand may benefit from motorists looking to avoid the January VAT rise. This factor, coupled with the strength of the first half of 2010, means year-end volumes are expected to lift to over 2.03 million units, 2% up from last year. Next year will continue to be challenging as consumer spending tightens and government's austerity measures take effect." However, David Raistrick, automotive partner at Deloitte, said a pre New Year rush seemed unlikely and that November's fall was "another blow to the automotive industry" as numbers declined for the fifth consecutive month. He went on: "While it was always unlikely that the figures would exceed last year's, which were fuelled by scrappage, the recent cold snap has not helped given that people have been kept away from showrooms. "Today's figures are a stark reminder of the challenges that lie ahead for the motor industry into 2011. As consumer and business confidence remains unsettled, it is doubtful that either private or business sales will grow in the New Year. I stand by my prediction that new vehicle sales for 2011 will be closer to the 1.8 million unit mark."