15th January, 2009

New car registrations in the UK fell 21.2% in December to 108,691 units.

The UK's full year total vehicle sales was down 11.3% from 2,404,007 in 2007 to 2,131,795 units in 2008.

In maintaining what has become a tradition, the diesel market share reached an all-time high of 43.6% of new vehicle sales.

Importantly, from an ecological aspect, average new car CO2 emissions fell by a record 4.2% to an average of 158.0 grammes/kilometre in 2008, making a total reduction of 16.8% since 1997.

"The global economic downturn, precipitated by the crisis in the international banking and finance sector, created unprecedented challenges for the UK automotive industry in 2008," said SMMT chief executive, Paul Everitt. "The measures taken by government to support the banking sector and kick-start demand have been necessary, but are not yet sufficient to restore confidence. Further action to ease access to finance and credit across the economy is essential if long-term damage to valuable industrial capability is to be avoided."

"2009 will be another difficult year for the UK automotive industry with new vehicle registrations and production significantly reduced. The industry faces these challenges stronger and more resilient than in recent memory. The extraordinary circumstances we currently face mean that government support will be required to take advantage of global economic growth when it returns."

The new car market fell in the UK for the eighth successive month in December, but the pace of decline was less than the expected 35% - the cut in VAT (value added tax, the UK's version of GST) on 1st December could be a contributory factor.

Registrations in the final quarter of the year were down 27.2%, the steepest fall of any quarter in 2008.

Registrations ended 2008 at 2,131,795 units, the lowest since 1996. This figure was 272,212 units off the 2007 total and 447,255 units off the 2003 market peak of 2.579 million units. A further decline to 1.78 million units is currently forecast for 2009 – the lowest since 1992.

Diesel volumes fell for the first time since 1999. However, diesel cars accounted for a record 43.6% share of the market, up from 40.2% in 2007 and over three times the share recorded in 2000.

Demand for small cars continued to fare better than for larger vehicles, with the mini segment recording the only growth in 2008 and super minis seeing their market share climb to 33.4%, from 32.1% in 2007.

As in November, the new Ford Fiesta was the best selling model in December, while the Ford Focus was the best seller for a tenth successive year in 2008.

The top selling models in the UK during 2008 were:

1. Ford Focus (101,593 units)
2. Vauxhall Corsa (99,574)
3. Ford Fiesta (94,989)
4. Vauxhall Astra (90,641)
5. Volkswagen Golf (65,029)
6. Peugeot 207 (53,462)

In other UK new car news, Aston Martin outsold Bentley (1,565 vs 1,542 units). The renewed MG marque didn't fare well, having registered just 133 units in the closing months of 2008.

Amongst the volume brands, market share improvements in the UK, during 2008, were limited to Chevrolet, Dodge, Hummer, Jaguar, Kia, Smart and Volvo.

Source: The UK's SMMT (The Society of Motor Manufacturers and Traders)