Car makers take solace in steadying sales figures

Car sales in the UK continued to decline last month but the industry was encouraged by a smaller drop than expected.

The Society of Motor Manufacturers and Traders (SMMT) said 63,424 vehicles were registered in February - 7.7 per cent down on February last year, which was the smallest decline in the past eight months.

The SMMT estimates the scrappage scheme accounted for about 20 per cent of registrations last February, so sales were up if its effects are removed.

February is a quiet month for the motor industry, with many consumers waiting for the new number plate in March.

SMMT chief executive Paul Everitt said: "The UK motor industry is looking for a strong March market to help boost confidence and kick-start demand for the new 11-plate.

"February new car registrations were better than expected and while below 2010 levels, they were significantly ahead of 2009 and on an improving trend."

New car registrations in Scotland totalled 4,445 units last month, down 16.6 per cent year-on-year.

Douglas Robertson, chief executive of the Scottish Motor Trade Association, said: "Once again, as with January, there is some disappointment at a decrease.

"However, whilst down on 2010 we are 14 per cent ahead of 2009, the last comparable pre-scrappage scheme figures. We find that an encouraging fact.

"We have predicted a downturn in the first half of 2011 and so the decrease does not surprise us. We fully expect the second half of 2011 to show an increase on the 2010 post-scrappage scheme figures."

UK car sales are more than 10 per cent down so far this year compared with the January- February 2010 period.

Sales of small cars, which were particularly boosted by the scrappage scheme, fell last month, but executive cars, luxury saloons, sports cars and MPVs all did well.

Demand for diesel cars rose 8.9 per cent, with diesel now accounting for more than half of the market.

In the UK, the Volkswagen Golf overtook the Ford Focus as the best seller last month, while in Scotland the Vauxhall Corsa retained the top spot.

Howard Archer, chief UK economist at IHS Global Insight, said the most serious weakness in last month's figures was the 26.7 per cent drop in private car sales, which he said reflects "the serious pressure that households are under."

He said: "Not only are car sales being pressurised by January's VAT increase and current record high petrol prices, but private sales are likely to be dampened appreciably by the serious headwinds facing consumers. These pressures are likely to make worried consumers very careful about splashing out on as big-ticket an item as a car."

The SMMT forecasts that registrations will fall about 8.3 per cent over the first six months of 2011 before picking up in the second half of the year.

Everitt said the industry was looking for a boost in the UK Budget on 23 March.

He said: "This month's Budget will be critical in determining consumer and business confidence and the ongoing stability of the market.

"We're looking for certainty on motoring taxes, a freeze on fuel duty and measures that support business investment and access to finance and credit."

FEBRUARY's best-selling cars in the UK

1 Volkswagen Golf 2,709

2 Vauxhall Corsa 2,617

3 Ford Focus 2,483

4 Ford Fiesta 2,404

5 Vauxhall Astra 2,036

6 Vauxhall Insignia 1,842

7 Vauxhall Zafira 1,705

8 Volkswagen Polo 1,570

9= Nissan Qashqai 1,367

9= Vauxhall Meriva 1,367

FEBRUARY'S best-selling cars in Scotland

1 Vauxhall Corsa 231

2 Ford Fiesta 169

3 Ford Focus 161

4 Nissan Qashqai 155

5 Mazda 2 133

6 Volkswagen Golf 128

7 Vauxhall Astra 127

8 Vauxhall Insignia 119

9 Honda Jazz 98

10 Volkswagen Polo 95