New car registrations fell 24% in April

New car registrations in April were down 24.0% or 42,193 units on the April 2008 market and 47,529 units short of the ten year average for the month, of 185,856 units, according to the Society of Motor Manufacturers and Traders (SMMT).

It was the lowest April market since 1991, although it was 13% above the forecast of 118,000 units. Registrations over the first four months of 2009 declined by 28.5% or 245,184 units. The rolling annual total has fallen to just 1.887 million units.

April saw demand for all sales types fall, although the decline within the fleet market was slightly less subdued at 21.8%. Diesel penetration slipped for the second time this year, although remains higher, at 44.2% compared with 42.7% in 2008, over the first four months of the year. Only the mini segment rose in the month, up 54.3%.

The Ford Focus returned to the top spot in the best selling model list for the first time since July 2008. The Ford Fiesta remains the UK’s best seller over the year-to-date.

Yesterday’s report from NAIGT stressed the importance of UK manufacturing and continued investment in low-carbon technology. The fall in average new car CO2 emissions in the first quarter of 2009 is a positive indicator that industry is continuing to move in the right direction.

The Budget saw the welcome announcement of a scrappage incentive scheme, with a £2,000 incentive (half from government and half from industry) to scrap a car registered on or before 31 August 1999 when buying a new vehicle. The scheme is not due to start until 18 May, which could cause some hold-off in demand until then.

Paul Everitt, SMMT chief executive, said: “Today records the eleventh successive fall in new car registrations yet the UK motor industry continues to demonstrate its strength and resilience throughout.

“Despite the tough conditions, industry is hopeful that its prospects will improve in the coming months and the steps it has taken will provide the basis for a sustained recovery once growth returns. The UK motor industry remains of strategic importance and will play a key part in generating jobs and prosperity into the future.”