September new car registrations better than expected

The number of new car registrations in the UK has been reported to be better than previously expected, an encouraging sign for new car dealerships.

´September registrations were some 20,000 units higher than we expected and this has got the 56 plate off to a racing start,´ said SMMT chief executive Christopher Macgowan. ´Traditionally an exciting time for buyers, September private registrations were on a par with last year´s volumes. In respect of the overall market to date, although fuel price increases have eased, their volatility, along with concerns over possible interest rate rises, continues to affect customer confidence.´

September is regarded as being the 2nd largest month for new car sales, just behind March, accounting for some 17 per cent of the annual market. Volumes dipped in 2006, but by just 0.7 per cent or 3,061 units. The figure was nearly 20,000 units above the 395,000 units forecast in July.

The September 2006 market was on par with the 1999-2005 average for the month of 414,800 units. Private demand was on par with last year´s September registrations, year-to-date falling by 0.7 per cent. September is a strong performer for the private sector, taking 46.3 per cent of registrations compared to 44.8 per cent average for the year.

September Facts and Figures

• The Ford Fiesta was September´s best seller – its first time at the top of sales charts since March 2000. This helped it pass Vauxhall´s Astra for second place over the year-to-date.
• Whilst the overall market only edged downwards in September, non-uk produced cars took the lion´s share of the volumes at 86.2 per cent.
• It was a good month for superminis, with five models in the top 10 and volumes up 10.4 per cent to ensure net growth over the year-to-date.
• The Focus was knocked off the top slot for only the third time in the past six and half years.
• Only luxury saloons, MPVs and superminis have shown growth over the year-to-date.
• Demand for diesel-engined cars rose modestly again in September, marking the fifth consecutive monthly gain. Registration volumes have grown in each of the past 24 quarters. The 2.9 per cent growth in the third quarter was the best quarterly gain in 2006.
• Registrations of cars carrying the 06 pre-fix were down 3.2 per cent on the 05 market and recorded the lowest March-August volumes since 2001. At 1.256mn units they were 105,603 units off the peak recorded in 2004 under the 04 pre-fix, but just 1.7 per cent off the 1999-2006 average for the six month period of 1.275mn.
• The weak economic setting, pressure on consumers´ ability to spend – in particular with rising utility bills and higher debt and the potential for further rises in interest rates has unsettled the new car market.