New car sales declined by 8.9%

Car registrations saw a year-on-year fall of 8.9% in September compared with a scrappage-fuelled 2009, new figures have shown.

A report by the Society of Motor Manufacturers and Traders (SMMT) found that a total of 335,246 new vehicles were registered last month.

The automotive industry body said that so far this year the new car market had seen a year-on-year rise of 7.8% at 1,635,659 units, and the year-end sales total is now expected to reach two million - marginally up on 2009.

The slowdown of the market reflects the fall in demand compared to September 2009, which was aided by the Government's Scrappage Incentive Scheme (SIS).

The SMMT said that on a like-for-like basis, excluding the effects of the car scrappage scheme, last month's sales figure was 16.3% ahead of September 2009 and the same as that in September 2008.

Paul Everitt, chief executive, SMMT, added: "Despite an 8.9% fall in September registrations, demand for new cars has stabilised and will end 2010 slightly up on last year.

"It is important that, alongside the Government's austerity measures, the comprehensive spending review signals a strong growth agenda to boost consumer and business confidence."

The report found that Ford Fiesta had emerged as the best selling model in September.

Copyright © Press Association 2010