Figures released this week from the SMMT (Society of Motor Manufacturers and Traders) have revealed that new car sales have fallen again in June 2011. 183,125 new registrations were recorded in June, this is down by approximately 6% when compared to June the previous year.
This is the 12th month running that new cars sales have dropped, indicating that people in the UK are very much feeling the pressure of ever-increasing living costs. New car sales are suffering with so many people deciding against making large purchases in a bid to tighten their belts and stay on top of their finances.
Car manufacturers are suffering as a result of the tough economy, while the fleet sector are seeing a strong level of demand.
Paul Everitt, Chief Executive at SMMT, comments “Slow, but steady economic growth in the second half of the year should see volumes increase, although the overall market is still expected to be around 1.93 million units”.
Howard Archer, Chief Economist at IHS Global Insight, adds, “Going forward, the new car market continues to face a challenging looking environment, particularly with respect to private car sales”. He goes on to explain that consumers are either unable to, or simply not prepared to spend their money on large or extravagant purchases. He also points the finger at soaring petrol prices, claiming they are ‘weighing down on car sales’.
But June wasn’t all bad news for car manufacturers, especially not for Ford who secured the top spot with the Ford Fiesta being awarded the title of best selling model, followed closely by the Ford Focus.
Vauxhall also have cause to celebrate when they pipped the VW Golf to the post in securing the title of best selling diesel car with the Vauxhall Insignia.
This article was brought to you by Think Insurance, the specialist Motor Traders insurance provider.