February new car sales up 26.4 per cent

The market exceeded all expectations, with a total of 68,686 cars sold in the UK last month. The scrappage scheme accounted for 19.6 per cent of these new car sales.

Demand for small cars continues to rise, with the three best-sellers being the Ford Fiesta and Focus plus the Volkswagen Golf. Alternatively-fuelled cars – mainly hybrids – also doubled their market share to 1 per cent.

SMMT chief executive Paul Everitt said, “Scrappage has generated eight consecutive months of growth in the new car market and we expect its benefits to stretch beyond the scheme’s closure later this month.”

The forecast for March – traditionally the strongest month, accounting for 17.8 per cent of annual registrations – and the new ‘10’ plate is positive, with volumes expected to push above 360,000 units.

But the new car market is expected to decline by almost 10 per cent in 2010 compared with 2009, particularly in the second half of the year, to 1.82 million units.

Paul Everitt warns, “The industry continues to face challenging market conditions. Strengthening business and consumer confidence remains the industry’s priority. A clear and consistent approach to CO2 based taxation and improved access to affordable credit are essential elements in sustaining recovery in the new car market.”

With the UK market’s recovery still fragile, the SMMT is also urging the Government to defer the planned new car tax rise, in a bid to maintain sales increases.

February’s top ten best-selling cars:

1   Ford Fiesta         3,236
2   Ford Focus         3,035
3   Volkswagen Golf         2,586
4   Vauxhall Astra         2,524
5   Vauxhall Corsa         2,391
6   Hyundai i10         1,938
7   Volkswagen Polo         1,900
8   BMW 3 Series         1,599
9   Kia Picanto         1,573
10   Peugeot 207         1,422

By Rhian Angharad Jones