New Car Output – Easing Decline

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Publish date: 2009-11-09

If the market of new cars and their sales is a promising indicator for the economy, then the good news is upfront. As all economic statistics state the British production of new cars fell by an estimated 16 percent in September compared with a year earlier. Yet, it seems to be the smallest decline over the last twelve months as the industry figures have shown. The Society of Motor Manufacturers and Traders, SMMT in short, reported that almost 120,000 new cars were made last month. At the same time, SMMT has attributed the lower decline in sales of new cars to several factors with one of the most important being the scrappage scheme. The demand for new cars may be underpinned by the extension of the financial aid for drivers willing to trade their old bangers. Some market analysts have also noticed that the slight increase in new car sales in particular market segments may be a weak, yet emerging, sign of an economic awakening and revival. They also say that the real impact of the scrappage scheme on the demand for new cars will show in full after the extension finishes early in 2010. Whatever actually makes the sales better than expected is of benefit to anybody in the automotive industry.

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