New car sales tumbled last month amid plummeting consumer
confidence.
The September figures from the SMMT showed that new car
registrations were down 21.2 per cent year on year to 330,295
units. Year-to-date sales have declined by 7.5 per cent to
1,794,419 units.
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This was the fifth consecutive month of falling sales, said SMMT
chief executive Paul Everitt, calling on the government to act to
alleviate conditions in the motor retail sector, which he
called “the most difficult economic conditions the industry has
faced in 17 years”. He said: “The chancellor’s pre-budget report
should set out a package of measures to boost demand for new
fuel-efficient cars and scrap plans for unfair increases in car
tax.”
Sue Robinson, director of the RMIF National Franchised Dealers
Association, demanded that the Bank of England cut interest rates
to stimulate demand. “While consumer confidence remains low, all
retailers, including car dealers, will find trading conditions
tough, so it is essential that the Government works to return
stability and confidence to the whole economy.
“Lower interest rates will help bring stability to the economy,
and reassure consumers, and help business. In the long run it is
good for the economy,” Robinson commented.
One manufacturer celebrating September sales figures that went
against the trend, however, was Fiat. Its sales volume of
9,818 units was its best result since September 2004.
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By GlobalDataThe relaunched Fiat 500 boosted the brand, and its small,
economical cars have strong appeal to cost-conscious car buyers
looking to downsize.
Andrew Humberstone, managing director, Fiat Group Automobiles UK
said: “This fantastic result is testament not only to our
eco-friendly cars and the overall desirability of the Fiat range,
but to the number of key dealer partners who exceeded their sales
targets by more than 150 per cent.”
