New registrations fail to boost auto sector

Society of Motor manufacturers and Traders (SMMT) figures published today (6 October) showed the overall market remaining up 7.8% over the year-to-date, at 1,635,659 units. September was 16.3% ahead of 2009 with scrappage excluded, and on a par with 2008 and SMMT expects the full year market to hold at two million, up marginally on 2009. SMMT chief executive Paul Everitt (pictured) said: "Despite an 8.9% fall in September registrations, demand for new cars has stabilised and will end 2010 slightly up on last year. It is important that alongside government's austerity measures, the comprehensive spending review signals a strong growth agenda to boost consumer and business confidence." However, at the professional services firm Deloitte, automotive partner David Raistrick commented: "The enticement of new plates has failed to deliver the much needed boost for the automotive industry, as new car registration figures for September fall. This is disappointing news given that September is a key month for the sector with figures typically rising as customers race to get new plates. "This year has proved incredibly challenging for the industry with demand cooling off following the end of scrappage. Based on its performance so far this year, the new car market will be hard-pressed to exceed the two million unit mark. However, we might see an increase in figures in the lead up to the New Year, as consumers look to purchase new cars before the VAT rate goes up on the 4th January."