Car sales plunge

5:30am Friday 5th September 2008

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THE motor industry endured its weakest August for new car sales since 1966, it has been revealed.

National sales of new cars slumped to 63,225 last month, according to the Society of Motor Manufacturers and Traders (SMMT).

The sales were down 18.6 per cent year-on-year with the credit crunch and rising fuel prices being blamed.

August is traditionally a slow month, with many consumers waiting for the new number plates in September, but that hasn’t stopped concerns that the consumer spending downturn is deepening.

Howard Archer, chief economist at Global Insight, said: "Sharply deteriorating car sales is a further clear sign that consumers are increasingly cutting back on their spending.

"Many consumers are doing this out of necessity due to squeezed purchasing power, but it is also likely that many are retrenching out of choice reflecting serious concerns about the economic situation and outlook."

The SMMT said it now expected new car sales to plummet by 10 per cent in the final four months of the year and has revised its forecasts down to 2.26 million sales this year and 2.16 million next, from more than 2.6 million seen in early 2004.

The best selling models in August 2008 were: 1. Vauxhall Corsa, 2. Ford Focus, 3. Vauxhall Astra, 4. Volkswagen Golf, 5. Ford Fiesta, 6. Vauxhall Zafira, 7. BMW 3 Series, 8. Citroen C4, 9. Ford Mondeo, 10. Peugeot 207.