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| UK new car sales 25% lower in May | UK new car sales 25% lower in May |
| (about 2 hours later) | |
| UK car sales fell by 24.8% in May compared with the same month last year, the latest industry figures have shown. | UK car sales fell by 24.8% in May compared with the same month last year, the latest industry figures have shown. |
| The number of new cars sold in the UK during the month was 134,858, said the Society of Motor Manufacturers and Traders (SMMT). | The number of new cars sold in the UK during the month was 134,858, said the Society of Motor Manufacturers and Traders (SMMT). |
| The fall is the 13th consecutive monthly decline in new car sales. | The fall is the 13th consecutive monthly decline in new car sales. |
| The figures do not capture the impact of the car scrappage incentive scheme, worth £2,000, which only came into effect on 18 May. | The figures do not capture the impact of the car scrappage incentive scheme, worth £2,000, which only came into effect on 18 May. |
| June's figures could see an improvement, said Paul Everitt, chief executive of the SMMT. | June's figures could see an improvement, said Paul Everitt, chief executive of the SMMT. |
| BEST SELLING CARS IN MAY Ford Fiesta - 7,040Ford Focus - 6,693Vauxhall Corsa - 5,525Volkswagen Golf - 3,961Vauxhall Astra - 3,549Peugeot 207 - 3,103BMW MINI - 2,650Ford Mondeo - 2,647Nissan Qashqai 2,629Vauxhall Insignia - 2,602 Source: SMMT | BEST SELLING CARS IN MAY Ford Fiesta - 7,040Ford Focus - 6,693Vauxhall Corsa - 5,525Volkswagen Golf - 3,961Vauxhall Astra - 3,549Peugeot 207 - 3,103BMW MINI - 2,650Ford Mondeo - 2,647Nissan Qashqai 2,629Vauxhall Insignia - 2,602 Source: SMMT |
| "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," he said. | "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," he said. |
| Carmakers across the world are struggling with a massive drop in sales during the economic downturn. | Carmakers across the world are struggling with a massive drop in sales during the economic downturn. |
| A total of 289,598 vehicles have been sold in the UK so far in 2009, down 27.9% from last year. | A total of 289,598 vehicles have been sold in the UK so far in 2009, down 27.9% from last year. |
| The Ford Fiesta is the most popular model, with 48,182 sold in the year-to-date | |
| Budding recovery? | |
| Under the scrappage scheme, a £2,000 incentive will be paid to motorists who scrap cars registered before 31 August 1999 to buy a new car. | |
| Half of the money will be paid by the government and half by the car industry. | |
| Similar schemes introduced in Europe have succeeded in boosting sales and there are signs of a similar impact in the UK. | |
| Hyundai, which has 2% of the UK market, said sales in May rose 36.6% to 3,325 and new orders totalled 9,000. | |
| In an average month, it would take 1,200 to 1,600 orders, said Tony Whitehorn, managing director of Hyundai Motor UK. | |
| But he said it was too early to say whether there had been a genuine turnaround in the market. | |
| "The scrappage scheme has given an incentive but there's still an underlying problem in confidence. It's hard to say whether there really are green shoots of recovery," he said. | |
| He added that corporate demand for vehicles had yet to pick up. |