Official figures from SMMT have shown that new car registrations fell 30.5% in March to 313,912 units, while over the first three months of 2009 the new car market shrank by over 200,000 units or a reduction of 29.7%.
The switch to smaller and more frugal diesels as consumers and businesses look to cut costs gathers pace as both sectors see an increase in market share.
Meanwhile these latest figures are sure to place more pressure on the shoulders of Chancellor Alistair Darling, with the SMMT calling for the implementation of a government sponsored scrappage scheme to stimulate demand in new cars.
“March new car registrations are a barometer of confidence in the economy, from businesses and consumers alike. The fall in the market shows that government needs to do more to boost confidence,” said Paul Everitt, SMMT chief executive. “A scrappage scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand. The UK is the only major European market not to implement a scheme.”
In the battle for the top spot of the best sellers table the usual scrap between Ford and Vauxhall continued and again the spritely Fiesta came out on top for the fifth successive month following sales of 20,654 cars pushing the Corsa down into second place. The larger Focus and Astra models come in third and fourth place, with the Volkswagen Golf sitting in fifth.
The only major carmaker to improve upon March 08 figures was Alfa Romeo thanks mainly to the new Mito.
Let us know what you think of these latest figures? Should the government install a scrappage scheme to help boost new car sales?
