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Back to Motoring news

Motoring news

January figures show scrappage low

09/02/2010

The Government's scrappage scheme accounted in January for the lowest proportion of new car sales since its introduction, industry figures have revealed.

The Society of Motor Manufacturers and Traders (SMMT) said that there had been 25,846 registrations through the scheme during the month, in which 145,479 cars were sold. The 17.8% of new cars bought in January through scrappage compares to 20.4% of all new registrations since the scheme's May 2009 introduction.

And with overall registrations in January 2010 almost 30% up on the same month last year, the trade body claims that the market is becoming more buoyant without relying solely on the initiative to spark sales.

By the end of January, the total number of cars and light commercial vehicles registered through the programme had reached 316,210, with funding set aside for a total of 400,000. Last week, Business Secretary Lord Mandelson announced that the scheme had been extended by a month from its original deadline and would now continue to the end of March.

Welcoming the extended deadline, SMMT chief executive Paul Everitt said that funding remained for more than 60,000 registrations and that the scheme continued to be an important stimulus.

However, he added: "The decreasing reliance on the scheme to deliver market growth is encouraging news for post-scrappage stability."

Meanwhile, the SMMT has published the results of research that it commissioned into UK carmakers' attitudes towards the supply chain. The survey, which sought the views of senior executives and purchasing managers, suggests that UK manufacturers are keen to source more components from domestic suppliers. Reasons cited included favourable exchange rates and the simplification of supply chains, but also related to new technology for "ultra-low carbon" vehicles.

Noting "genuine interest" in a stronger UK-based supply chain, Paul Everitt said that the challenge was to convert this into orders.

Calling for collaboration between the industry and Government, he added: "The transition to a low-carbon future presents significant opportunities for growth in the automotive sector but immediate action is needed if the UK is to stake its claim and benefit in a global industry."