Car sales fall below 2.5m

From the Swindon Advertiser, first published Tuesday 10th Jan 2006.

For the first time in four years the number of cars sold in the UK has fallen below the 2.5m mark.

Last year sales were five per cent down on the previous year and 2,240,000 units were sold.

But locally the picture is considerably brighter.

Honda sold more than 11 per cent in the European market place and local dealers are not too gloomy "This is the first time since 2001 that sales have fallen below 2.5 million,' said Sue Robinson, of the Retail Motor Industry Federation.

"The decline in the market is not insignificant.'' Retailers say the main reason seems to be nervousness on the part of the consumer: the fall is mainly from private buyers.

This mirrors the high street experience over the past few months interest rate rises in 2004, increasing taxation and a general feeling of insecurity are all playing a major part."

Dealer principal Andy Jones at Fish Brothers, Lexus said that 2005 had been a peculiar year for his company in Swindon.

"By June we had run out of the IS200 and we enjoyed great success with the new generation GS Series in April.

"November saw the launch of the new IS250 Series which was well received and helped to increase our market share dramatically, while some of our competitors have been less fortunate.

"Now 2006 has arrived, along with the eagerly awaited IS220 Diesel, the first diesel which Lexus has ever produced. We already have a strong order book and expect to almost double our new car sales this year.'' Some good news for the industry is that December showed record registrations of 156,866 units, up 8.7 per cent on 2004, with diesel registrations rising a massive 40.6 per cent.

These are hopeful signs that the industry can continue to hold its nerve despite tough trading conditions over the coming year.

Sue Robinson added: "Overall, putting the figures into context, 2006 is unlikely to fall below the two million mark, which is seen as a watershed.

"It should also be noted that the UK remains the second largest market in Europe.''

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