UK Auto Market Expands by 26 Percent in February

The UK automotive market continues to grow: the Society of Motor Manufacturers and Trades released the country’s February sales reports that show a 26.4 percent increase as compared to the figure registered in February 2009.

This surge makes February the eight consecutive month in which Britain’s car market expanded. The rising trend has been driven by the government scrappage scheme: official figure show that the current scrappage program supported the sale of 367,506 vehicles - 19.6 percent of ones sold last month are credited to the incentive scheme.

The UK authorities announced the expansion of the scrappage scheme through March, a move that will provide further support to the country’s car market.

"The scrappage scheme has tempted private buyers back into the new and used car market. However, the business market is still fragile with many fleet and business operators delaying the replacement of vehicles, though the beginning of 2010 has seen some positive signs in this sector with the fleet market up 17 per cent.” said Sue Robinson, the Retail Motor Industry’s Director.

However, the overall forecasts for 2010 show reserved expectations, due to multiple disturbing factors, such as an upcoming probable tax increase and the end of the subsidies program.

"The continuing outlook for 2010 is set to be challenging with a level of uncertainty being caused by the imminent general election, it is likely that tax rises, public spending cuts and the end of the scrappage scheme in March will make consumers more cautious in their spending, certainly in the shorter term," Robinson added.
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About the author: Andrei Tutu
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In his quest to bring you the most impressive automotive creations, Andrei relies on learning as a superpower. There's quite a bit of room in the garage that is this aficionado's heart, so factory-condition classics and widebody contraptions with turbos poking through the hood can peacefully coexist.
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