UK New Car Registrations Rise For Third Straight Month
06 October 2009 - 7:57PM
Dow Jones News
U.K. new-car registrations rose for the third consecutive month
in September as the government's car-scrapping scheme continued to
bolster sales.
Registrations - a measure of sales - rose 11.4% on the year in
September to 367,929 vehicles, compared with a 6% rise in August
and a 2.4% rise in July, according to data from the Society for
Motor Manufacturers and Traders.
September is one of the most important months for U.K. car sales
because it marks one of the twice-yearly changes in car
registration plates.
"Market conditions remain challenging with demand being
underpinned by the extremely successful scrappage incentive
scheme,” SMMT Chief Executive Paul Everitt said.
The U.K. scrappage plan, which came into effect May 18, mirrors
similar plans in other Western European markets. It offers car
owners GBP2,000 in discount on new vehicles when they trade in
vehicles that are more than 10 years old. The cost of the discount
is split equally between the government and car manufacturers.
Demand for new cars had plummeted in the U.K. before the scheme
was implemented, due to the deepening recession. New-car
registrations for the first nine months of this year are still down
15% on the year-earlier period at 1.52 million vehicles.
The U.K. government initially set a budget of GBP300 million for
the scheme, meaning that up to 300,000 vehicles could be purchased.
However, the success of the scheme meant that the money was set to
run out this month, and the government last week added another
GBP100 million to the scheme. At that time, it said some 227,000
vehicles had been ordered so far under the initiative.
“The extension of the scheme will help to sustain demand through
the latter part of this year and into 2010. This will allow
economic recovery to strengthen and safeguard valuable industrial
capability,” Everitt said.
-By Steve McGrath, Dow Jones Newswires; 44-20-7842-9284;
steve.mcgrath@dowjones.com