Weak car registrations in August

The August new car market was down by 18.6% and 3.8% year-to-date, according to the Society of Motor Manufacturers and Traders (SMMT).

August typically only accounts for around 3% of annual volumes, falling just before the plate change in September.

The market continues to weaken as consumers hold off new car purchases in the face of deepening concerns over the state of the economy.

The August market was the lowest since 1966 and accounted for a quarter of the fall in volumes over the year-to-date. The last three months account for 89% of the drop.

Outlook subdued as economy falters

With GDP growth projections revised down to 1.5% in 2008 and below 1% in 2009, coupled with rising inflation and the availability of cheap credit diminishing, SMMT revised forecasts for the new car market down to 2.26mn and 2.16mn for 2008 and 2009 respectively.

Volumes are expected to fall by some 10% or over 85,000 units in the final four months of 2008.

New ‘58’ plate in September expected to slip below 390,000 units, from 419,290 units in a strong 2007.

All sales types down in August

The pace of decline in the private sector has quickened, reflective of consumers holding off from making new car purchases as they adjust to the unsettled economic setting. It is hoped attractive deals and offers can encourage September registrations.

Fleet volumes have also slowed, with declines in each of the past two months. Year-to-date volumes are flat, but the market share has grown.

Vauxhall Corsa tops chart in August

Vauxhall’s Corsa outsold the Ford Focus in August, although places switched over year-to-date. Vauxhall outsold Ford in the month too, as last year, although Ford did close the gap. Lotus and smart both recorded exceptional growth in the month.

Mini segment volumes rose in August, as their market share doubled, while supermini’s share of the market moved from 29.1% a year ago to 33.8%, suggesting consumers are switching to more efficient motors.

Diesel share rises, despite sales drop

The diesel market fell for a second successive month in August, although its market share once again improved – from 41.4% to 44.3%. As consumers tighten their belts and move to more efficient models, diesels remain an effective choice. VW’s Golf was the best selling diesel model in August and over the year-to-date.