Scottish car sales down 4% in August

MOTOR industry leaders yesterday expressed disappointment at a slowdown in new car sales growth north of the Border, but said dealers were braced for a “very busy” plate-change month.

A Ford Fiesta. Picture: Contributed

New figures revealed a 4 per cent year-on-year increase in car registrations last month. While August is traditionally a quiet month ahead of the 1 September plate change, the modest rise in Scotland compares with a bumper 10.9 per cent jump for the UK as a whole.

Douglas Robertson, chief executive of industry body the Scottish Motor Trade Association (SMTA), said there had been solid demand in both the private and business sectors during August, pointing to a “continuing increase in consumer and business confidence”.

But he added: “We are a little disappointed that we have not kept up with the UK increases in August and this might be a reflection of the registration problems that many of our dealers are having with the Driver & Vehicle Licensing Agency (DVLA) in Swansea.”

The SMTA recently branded the DVLA’s handling of registrations as a “shambles”, claiming delays in the process were causing car dealers large amounts in disrupted cash flow.

A move to centralise work and rationalise the DVLA’s network of offices had led to the agency taking much longer than normal to process the transfer of personal registration plates.

Yesterday’s data from the Society of Motor Manufacturers & Traders (SMMT) showed that Scotland was ahead of the UK in new car sales in the year to date, up 13.3 per cent against a nationwide increase of 10.4 per cent.

Robertson added: “We remain ahead of the UK in 2013 and are very pleased at that. We can, I think, look forward to a very busy ‘63’ plate September.”

A total of 65,937 vehicles were registered last month across the UK, 5,986 of them in Scotland. This took the UK year-so-far total to 1,391,788.

With sales from the 63 number plates introduced this month still to be counted, the SMMT reckons that total new-car sales in 2013 could reach just under 2.22 million – an 8.4 per cent rise on the 2012 total.

Mike Hawes, the SMMT’s new chief executive, said: “UK car registrations have now risen consecutively for a year and a half.

“Private and fleet buyers are clearly capitalising on attractive deals and new technologies against a backdrop of increasing economic confidence.

“The August rise bodes well for the new 63 plate.”

Howard Archer, chief UK and European economist at IHS Global Insight, the forecasting group, said: “Robust car sales in August provide yet more good news on the UK economy. In fact, car sales have been robust through 2013, which is in marked contrast to the weakness seen across most of Europe.

“Current sharply improving consumer and business confidence comes at a particularly good time for the car industry given that September is a key month for sales due to the number plate change.”

The Ford Fiesta maintained its crown as the most-popular car in Scotland and the wider UK.

Top cars in Scotland

1 Ford Fiesta 315

2 Vauxhall Corsa 237

3 BMW 1-Series 223

4 Ford Focus 193

5 Vauxhall Astra 181

6 Nissan Qashqai 174

7 VW Polo 172

8 VW Golf 161

9 Kia Sportage 139

10 Hyundai i10 123

Top cars in UK

1 Ford Fiesta 3,289

2 Vauxhall Astra 2,428

3 VW Golf 2,233

4 Ford Focus 2,225

5 Vauxhall Corsa 2,151

6 BMW 1-Series 1,927

7 Nissan Qashqai 1,875

8 BMW 3-Series 1,517

9 VW Polo 1,442

10 Vauxhall Insignia 1,147

Source: SMMT