By Kev Kiernan
The number of new cars being sold in the UK dropped again last month, leaving total sales 17% down on August 2009 and leaving car insurance providers scratching their heads over how to increase revenues.
The Society of Motor Manufacturers and Traders said 55,305 new cars were registered in August and that the decline will continue for the rest of the year.
Sales in July this year also fell, for the first time in 12 months, although it continues the trend seen before the Government boosted the industry with its car scrappage scheme. New car sales fell massively in the first half of 2009 but picked up once the scheme was introduced.
Now that the car-scrappage initiative is over the industry decline is expected to return, although despite the falling sales of the last two months annual new-car sales are up 13.2% on 2009.
Sales of diesel cars represent 52.6% of the market, the highest proportion ever recorded.
Fewer mini, supermini and lower-medium sector cars were sold last month but more multi-purpose and sports vehicles were sold, as were executive and luxury saloon cars.
The 10 best-selling cars of August 2010 were, respectively, Ford Fiesta, Ford Focus, Vauxhall Astra, Vauxhall Corsa, BMW 3 Series, Volkswagen Golf, Nissan Qashqai, Vauxhall Insignia, Volkswagen Polo and Audi A3.
