Rise in number of car registrations

The latest report by the Society of Motor Manufacturers and Traders (SMMT) revealed that 158,082 cars were registered last month, up 57.6 per cent on November 2008 registrations.

Year-to-date registrations were down 8.8 per cent at 1,844,063 units, however the SMMT has forecast that full-year market figures are likely to exceed 1,975,000 units.

Volumes in the past five months have risen by 11.2 per cent, or more than 110,000 units; sales for business, fleet and private cars increased in the month, with private sales recording a 141.2 per cent rise.

As with the majority of this year, Ford Fiestas were the best-selling model in November, with the registration of smaller cars continuing to outperform the market.

The SMMT said that the results for November 2009 were above expectations and could push the market up to November 2007 levels.

Further growth is predicted in December and the market is expected to be around 50,000 units above the 1,928,000-unit forecast in October.

However, the SMMT said the outlook for 2010 remains uncertain, due to the scrappage scheme ending and VAT returning to 17.5 per cent.

Paul Everitt, chief executive of SMMT, said: ‘The increase in new car registrations in November reflects the positive impact of the Scrappage Incentive Scheme, customers avoiding the VAT increase in January and the very difficult conditions we experienced a year ago.

‘SMMT is urging the government to use its pre-budget report to sustain the recovery and generate business confidence by stimulating demand in key parts of the new-vehicle market.’