Car sales down 5 per cent in 2005 |
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Sat, 07 Jan 2006 14:05
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LONDON: Annual sales of new cars in Britain have fallen for the second consecutive year in 2005 and the decline is expected continue through 2006, according to the motor industry. Registrations during 2005 were down 5 per cent at 2,439,717 although there was a perceptible increase of 8.7 per cent in December compared with the same period in 2004.
The Society of Motor Manufacturers and Traders (SMMT) said the sales are expected to fall by 2.7 per cent in the next 12 months.
SMMT attributed the cause to the general economic slowdown and the constraints on household spending. It said the worrying part was that there was more than 10 per cent decline in sales to private owners.
December was the only month during the year when the registrations went up, but SMMT said it was basically on account of the deadline for tax break for diesel-engine vehicles ending in December. Diesel cars accounted for 45 per cent of the market in December compared with 37 per cent for the whole year.
SMMT's chief executive Christopher Mcgowan said 2006 will be a tough year for the industry.
Almost all the large car makers had their sales down. Ford had a 5 per cent fall in new registrations, while Vauxhall's were 2 per cent down. The market sentiment, however, did not affect German BMW as it posted record U.K. sales of more than 156,000 vehicles. Registration of BMW-badged vehicles increased by 9 per cent while the Mini accounted for 2 per cent increase.
Market share of imported cars rose to 83 per cent during the year from 81.9 per cent in 2004.
Ford Focus continued to be the best seller for the seventh year in a row, while Vauxhall Astra took second place, up from sixth in 2004.
SMMT said the collapse of MG Rover had a severe impact on the market. The company accounted for more than one- third of the downturn in sales in 2005 with 127,000 fewer cars registered.
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Forecourts hit as new car sales decline 5% in 2005 