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Showroom Traffic

19/03/2010

• Scrappage continued to fuel sales in February as buyers came to market before the scheme concludes at the end of March
• New registrations rose 26.4% during the month to 68,686 units - the 8^th successive rise in sales since the launch of the scrappage scheme in mid-May last year
• Top 10 Volume Brands in February:

• The February 2010 market was above expectations but there are warnings of difficult times ahead
• The benefits of the scheme are expected to stretch beyond its closure later this month but the industry continues to face challenging market conditions
• Over the past decade, March has been the strongest month for new car registrations and it is predicted that the rush for new registration plates combined with the final month for scrappage will protect new car sales in March
• However, with anticipated price rises due to the weakness of sterling, the end of scrappage, and the possibility of new showroom taxes and a rise of VAT to 20%, it is expected that sales of new cars will plateau
• Carmakers could fight the end of scrappage by introducing their own discount schemes, such as those already introduced by Vauxhall, Toyota, Hyundai and Nissan, but overall the outlook for 2010 is set to be challenging.