New car registrations fell 21.9% in February

February is typically one of the lowest volume months for new car registrations, being just prior to the registration plate change in March. February typically accounts for just 3.4% of annual sales, compared with 18% in March.

The market declined further in February, down 21.9% to 54,359 units, according to the Society of Motor Manufacturers and Traders(SMMT). This was slightly above expectations for the month, but the market remains subdued. The falling value of stocks and shares, weak economic data and increasing number of job losses all continue to dampen consumer confidence and the willingness to spend on large ticket items, like cars.

The slowdown continues across all sales types, fuel types and segments – with the notable exception of the mini sector. New models in the mini segment have helped achieve a 47.3% rise in February and a 42.7% gain over the first two months of 2009.

The Ford Fiesta was the UK’s best selling model for the fourth successive month. The Fiesta was among those models which helped strengthen the supermini segment’s market share to 33.3% in February, from 29.6% last year.

The overall new car market is expected to fall to 1.72 million units this year, from 2.13 million in 2008 and 2.4 million in 2007. March is currently expected to see volumes fall in line with the reduction seen over the first two months of the year.

The motor industry continues to seek government support to stimulate market demand.

Paul Everitt, SMMT chief executive, commented: “New car registrations continue to decline and although government recognises the strategic importance of the UK motor industry, urgent action is still needed.

“Other European countries have been proactive in assisting their automotive industries and it is imperative that UK government increases the pace in responding to industry proposals for a scrappage scheme and access to finance and credit.”