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New registrations rise but auto sector remains cautious
Page 48
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NEW CAR REGISTRATIONS were up 6% in August. mainly due to the scrappage scheme: although the luxury sports car sector is also showing growth.
Despite this rise, the automotive sector is still not confident the 300,000 or so sales potentially attracted by the £2,000 scrappage allowance will form a continuing trend once the cash is exhausted.
Toyota has dropped yearly global production from 10 million cars to 6.7 million and says that although sales for July and August appear stable, it doesn't expect a return to anything like 2008 levels, while Honda took the option of closing down UK production during the winter.
In the commercial world, truck sales are expected to rise in September compared with previous months. Robin Dickeson, manager commercial vehicle affairs at the Society of Motor Manufacturers and Traders, says: "This is the last month when the UK governments Reduced Pollution Certificate incentive will be available for Euro-5 trucks, so there is a one-off opportunity to add around £5,000 to the value of a heavy truck over its 10-year life. Miss the date, and you'll miss the money."