Experts warn that Britain’s most industries will be facing a “challenging” year owing to seven successive months’ fall in car sales rate although a recovery in the luxury sector was observed.
The rates have been in tandem with the forecasts, even in January analysts said. The rising fuel costs, high VAT and unemployment problem among consumers, collectively would make a negative impact on private car sales this year in experts opinion.
Society of Motor Manufacturers and Traders (SMMT), the industry body revealed that about 128,811 vehicles were sold last month, which is believed to be lesser than 11.5 per cent in comparison to the previous year’s figures. SMMT also said that the executive, luxury and dual-purpose sector recovered well but the demand for smaller cars fell sharply in January.
Another data reported from Scottish Motor Trade Association (SMTA) underscored that a year-on-year sale was down with higher mark of 12.9 percent with 9,694 units. Overall, the private car industry is at its worse declivity in the country.
Paul Everitt, SMMT’s chief executive noted that this fall presaged the beginning of a tough year for the UK motor industry. The Ford Focus (7,582 registrations) and the Vauxhall Corsa (sales of 510) were the best selling new cars in the UK and Scotland, respectively.