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UK Car Market Shows Small Signs of Improvement in February

The Society of Motor Manufacturers and Traders (SMMT), one of the largest and most influential trading associations in the UK, has reported today that new car registrations actually fell less than expected last month, dropping just 7.7 percent to 63,424 units sold. While that doesn’t sound like good news, this actually shows the smallest dip in the recent downturn and betters expectations by 6 percent.

“The UK motor industry is looking for a strong March market to help boost confidence and kick start demand for the new 11-plate. February new car registrations were better than expected and whilst below 2010 levels, they were significantly ahead of 2009 and on an improving trend,”
said Paul Everitt, SMMT Chief Executive.

As February is a very low volume month, just ahead of the registration plate change in March, SMMT actually expected the market to drop 13.7 percent last month on a yearly basis. In 2010 February represented just 3.4 percent of the annual share of sales, whilst March took a 19.6 percent of the yearly market.

In February of last year, the Scrappage Incentive Scheme (SIS) accounted for almost 20 percent of the market, so is those registrations removed from the equation, the market would actually be up 13.2 percent in 2011. The good news is that over the past 12 months was down just 1.7%. Meanwhile, fleet volumes recovered in February, marking an increase of 8.6 percent, but private demand continued to decline.

According to the result, the Volkswagen Golf was the best seller in February, while Ford’s Focus is number one over the year-to-date.

“This month’s Budget will be critical in determining consumer and business confidence and the ongoing stability of the market. We’re looking for certainty on motoring taxes, a freeze on fuel duty and measures that support business investment and access to finance and credit,” Everitt added.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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