Figures just released from the Society of Motor Manufacturers and Traders show that new car sales were down to their lowest point since 1994 when there were 1.91 million new vehicles being registered in the UK. During the year 2011 there were only 1.94 million vehicles sold in the UK which is said only to be a reflection on UK confidence, not on the manufacturing sector.
Total car sales of those manufactured in the UK only account for one-fifth of the number actually manufactured here. Recent data on the SSMT indicates that the automobile manufacturing sector has recovered better from the credit crisis than sales of autos at home in the UK. It is projected that manufacturing will tend to increase throughout this year as well as next even though domestic sales may remain sluggish.
According to the chief executive of SSMT, Paul Everitt, these numbers reflect the fact that the UK is leaning towards balancing the economy through manufacturing as opposed to sales. He further explains that these are the types of figures one would expect because the focus is on a strong performance within the manufacturing segment of the UK’s economy and sales may very well remain weak as a result.
Consumer confidence may remain sluggish in terms of new car sales in 2012 but there is some hope that 2013 will see a slight bit of recovery. Fleet sales actually saved the new car market from dropping any further than 4.4% over the previous year but nonetheless consumer sales were down by 14%. What kept the market going was the demand for company cars and hire cars.
Looking into the future, petrol prices will almost certainly affect the way consumers purchase new cars. Now consumers are looking to cleaner diesel powered vehicles as well as those manufactured to run on alternative fuels. Finally, it appears that until the eurozone recovers and consumer confidence is regained, new car sales will probably remain sluggish. On a side note, the Ford Fiesta took the honour of being the UK’s number one best selling new car in 2011.
