Car demand falls 'due to low consumer confidence'

08/08/2008

Data released by the Society of Motor Manufacturers and Traders (SMMT) has shown that the new car market in July was down by 13 per cent compared to the previous month and sales had fallen by three per cent in the year to date.

Car insurance customers may be interested to know that the demand for alternatively fuelled vehicles, such as hybrid or electric, was up by nearly 20 per cent in July.

The bestselling new car in July was the Ford Focus, which saw an 8.5 per cent rise in sale volumes over the month.

Paul Everitt, chief executive of the SMMT, said: "The 13 per cent decline in July new car registrations reflects the continued deterioration in consumer confidence being experienced across the economy. Rising fuel and household bills, alongside falling house prices are making consumers reluctant to commit to new expenditure."

He claimed that car manufacturers were "doing their bit" to support consumers in that new cars are now 22 per cent more affordable than they were ten years ago and are more fuel-efficient thanks to new technology.

Mr Everitt added he believes the car industry "needs the support of government" in order to encourage the sale of low emission vehicles, which could ultimately lower the cost of motoring for consumers.

In related news, children in Tyneside are benefiting from the effect of the credit crunch on motorists and are earning money with car-washing businesses and undercutting local garages.

The Newcastle Evening Chronicle reports that children in the North East have earned around £2.4 million so far this year from cleaning cars, according to a study by the British Motor Industry.

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