New car registrations strengthen in August

A 6% rise in August registrations to 67,006 units outstripped the August 2008 figure of 63,225 units, building on the 2.4% gain in July, as the scrappage incentive schemes continues to influence the market positively. 102,071 vehicles have been registered under the scrappage scheme since its start. Registrations from private buyers – up 50.5% from a weak 23,717 in August 2008 to 35,694 in August 2009 – and of small cars – the mini segment surged 252.8% – were up strongly and the outlook is for growth in the traditionally important September market with its new '59' plate. August typically accounts for just 3.3% of annual new car registrations. September, with the plate change, accounts for an average of 17% of the market. However, despite the growth, the 2009 August market was still over 10,500 units below the 2007 outturn and 15% off the 78,800 market averaged between 1999 and 2008. Registrations over the first eight months of 2009 remain down 21.5% or 315,014 units, and over the past 12 months volumes have fallen by 530,125 units. Paul Everitt, chief executive at the Society of Motor Manufacturers & Traders (SMMT) said the new registrations figures were welcome news for the industry. "The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead. It is essential that these early signs of recovery are sustained into 2010." Commenting on the new figures, David Raistrick, UK manufacturing leader at Deloitte believes the real test will come with September's figures. "It remains clear that the scrappage scheme has helped fuel this increase in production and registration levels, especially in the small car sector," he said. "However, the industry should not become complacent. We are not out the woods yet and it is imperative that the sector maintains this level of growth to achieve a sustainable recovery. "It is clear that in order for the UK to emerge from recession we need to see real and sustained recovery across the automotive industry and manufacturing sector more widely. "With September's traditionally higher registration numbers it is critical that we see the positive increase from the last two months continued. I anticipate that new car buyers will flock to purchase their September cars taking advantage of the scrappage scheme, which will bring the end date of scrappage closer as funding runs low." The Ford Focus (pictured) was the best selling model in August