The Ford Focus - Car Scrappage Scheme Big Winner

August Car Sales – The Best Sellers
1  Ford Focus 4,366
2  Ford Fiesta 2,968
3  Hyundai i10 2,431
4  Vauxhall Corsa 2,031
5  Volkswagen Golf 1,832
6  Peugeot 207 1,558
7  BMW 3 Series 1,482
8  Vauxhall Astra 1,355
9  Vauxhall Insignia 1,334
10 Toyota Yaris 1,331
Source: SMMT
-

The Society of Motor Manufacturers and Traders (SMMT) stated there was a clear link between the Car Scrappage Scheme and sales increase with the smaller fuel-efficient models benefitting the most.

However, despite displaying resilient and determined chararcteristics, total car sales since the beginning of 2009 are still down by 21.5% compared to the same period for 2008. This demonstrates the severity of the recession and also provides an indication of how low car sales would have been if the Car Scrappage Scheme had not been launched.

“The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead,” commented SMMT Chief Executive Paul Everitt, who also added “It is essential that these early signs of recovery are sustained into 2010,” he added.

Compare and contrast the month of August, which typically accounts for nearly 3.3% of annual new car registrations, whereas September typically takes up to 17% of new sales. Based on these historical sales figures, September will provide a key test and indicator for the motor industry’s future when the new ‘59′ number plates are introduced.

Topping the Scrappage Table - the Hyundai i10

The Society of Motor Manufacturers and Traders (SMMT) has said the UK Car Scrappage Scheme has begun to have a “positive impact” on the industry as the decline in new car sales slowed to its lowest rates for almost a year.

176,264 new cars were sold in June, 15% above the SMMT prediction of 153,000, and new car registrations were down 15.7% compared with the same month last year, a significant improvement on the 25% drop seen in May.

The top selling car in June was the Ford Fiesta, with the Focus second and Vauxhall claiming 3rd and 4th with the Corsa and Astra respectively.

Topping the list of cars sold through the scrappage scheme in June however is Hyundai who sold 3,042 cars, well in excess of Toyota (2,586), Ford (2,066) and Fiat (1,743).

29,796 vehicles have now been sold through the scrappage scheme since its inception on May 18th according to the SMMT, whilst government figures show that some 87,000 orders had been placed up to and including June 21st.

Top Selling Car for June - the Ford Fiesta

Notably, demand for small cars has shot up with the “mini” sector showing 145.4% growth over the year and in addition, “superminis” took a record 37.2% share of the market.

Ian Robertson, BMW Group MD commented: “From the first quarter to the second quarter of the year, there was a stabilisation of a negative trend” following the introduction of cheaper entry models into the scheme for both its BMW and Mini brands.

Hyundai’s UK MD Tony Whitehorn said that “scrappage customers” we generally going for small cars and were often their first brand new vehicle. Hyundai report that UK sales have almost doubled from the same month a year ago, thanks largely to the scheme.

The Department for Business, Innovation and Skills has pointed out that at the current rate, the scheme would be exhausted by the end of October, well in advance of the projected March 2010 end date.

Professor David Bailey, director of Coventry University Business School said that pressure would be on the government to extend the scheme, something which the Business Department is currently “adamant” won’t happen.

Bailey also noted that the car industry wouldn’t properly start to recover until wider confidence and the housing market picks up.

Hyundai stated that its new orders for the period April 23 to June 7 amounted to 8,246, which put the South Korean based manufacturer at the top of the list of the 15 car companies involved in Reuters’ survey.

Leading the way for Hyundai is its entry level i10 model, which is available for under £5,000 with the scrappage discount.

i10 - biggest selling model

All but one of the companies polled claimed that consumers were showing interest in cheaper and more fuel efficient cars, a trend which was back up by the UK’s Society of Motor Manufacturers and Traders (SMTT) who note that since the various scrappage schemes have been implemented across Europe “there’s a tendency to buy smaller cars.”

The SMTT spokesperson noted that the trend was most likely due to a combination of lower CO2 emissions, better mpg and the lower price of these smaller models.

In second place behind Hyundai were Ford, who have 8,050 new car orders for the period, with Toyota just behind with an estimated 7,800 vehicle orders.

The Car Scrappage Team previously published statistics based on their own Scrappage survey reporting consumers were utilising the Scrappage Scheme to pursue the fuel efficient economy end of the market.

The Society of Motor Manufacturers and Traders (SMMT) have revealed UK car sales for May 2009 plunging 24.8% to 134,858 compared to May ‘08. Furthermore, this is the 13th consecutive monthly decline in new UK car sales. Since the 1st January 2009, UK vehicle sales have totalled 748,691, which is down 27.9% year on year.

Top of the Premiership - Fiesta Zetec

The Ford Fiesta notched up the highest sales figures in May of 7,040, closely followed by her big brother – the Ford Focus with 6,693.

The Car Scrappage Team will be analysing May’s sales figures in further detail tomorrow. We think you’ll find it makes interesting reading.

Paul Everitt, chief executive of the SMMT was quick to remind the industry that the month of June will most likely show the true and full picture regards new car sales, as the Car Scrappage Scheme only officially commenced on 18th May ‘09. And Everitt continued by saying “We have seen an encouraging start to the scrappage incentive scheme with 35,000 orders being placed since it was announced, although it will take time to feed into registration figures”.

The Car Scrappage Team was one of the first media sources to report certain manufacturers and UK dealerships setting up their own scrappage schemes prior the official commencement. Moreover, some continue to demonstrate their entrepreneurial skills and fighting spirit by creating their own, highly incentivised initiatives, which are over and above the Government’s scheme.

Full Premiership sales, stats and analysis tomorrow.