New car registrations fall 23% in October

The new car market fell for a sixth successive month in October, according to the Society of Motor Manufacturers & Traders (SMMT). The decline was the steepest recorded so far in 2008 and was more like the falls reported in 1991. October typically accounts for 6.9% of annual volumes.

Registrations over the past three months have fallen by 21.4%. Figures are down by 184,541 units over the first ten months of the year.

The decline was in line with expectations of a difficult quarter four. SMMT has revised the full year 2008 forecast of the new car market down to 2.15 million units, a 10.7% year-on-year decline. The market is forecast to fall to 1.92 million units in 2009.

The economic backdrop has heightened consumers’ ardour for fuel-efficient vehicles and diesel penetration reached a record 45.6% this month.

Vauxhall’s Corsa was the best selling model in October, whilst the Ford Focus remained the best seller over the first ten months of 2008. Dodge, Jaguar and Volvo were among the few manufacturers to improve volumes in the month.

The mini segment was the only sector to post growth in October, although supermini volumes continue to attract a larger share of the market.

The overall weakness in the market is most prominently felt in the private and business sectors, but fleet demand has also come unstuck in recent months.

Paul Everitt, SMMT chief executive, commented: “October has proved another difficult month for the UK motor industry and action is needed to help restore consumer confidence and encourage buyers back to the showrooms.

“Cuts in interest rates that are swiftly passed on to consumers, scrapping planned increases in VED and maintaining public expenditure on new vehicles are essential parts of the package required by industry. There is also a clear role for European action to support continued investment in new, lower carbon vehicle technologies.”