New car sales continue to decline

10/05/2011

The number of new cars sold in April shrunk for the tenth month in a row, figures from the Society of Motor Manufacturers and Traders (SMMT) have shown.

A drop of 7.4 per cent from the number of cars shifted last April saw 137,746 new vehicles sold last month, which took the full year's total to 696,082.

By this time last year 8.5 per cent more cars had been sold. However, the car scrappage scheme contributed significantly to the number of new cars sold during this period.

The number of registrations during April were nevertheless better than the SMMT had anticipated. Its full-year sales forecast remains at 1.93 million.

Experts have forecasted that the market will recover next year back above two million units. However, question marks are being raised about buyer confidence and there are some concerns over short-term supply constraints which could come about as a result of the earthquake and tsunami in Japan in March.

The society added that it expected the market to slow this spring but recover in the July-September period.