New car registrations rose 10.8 per cent in June despite the ending of the scrappage scheme. Sales rose 19.9 per cent in the first half but are set to dip by year end, according to SMMT forecasts. “The new car market continued to perform above expectations in June, with fleet sector registrations up 25 per cent compared to this time last year. “The results indicate improved business confidence and a strengthening economic recovery,” said SMMT chief executive Paul Everitt. “The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery.”

June 2010 recorded the 12th successive monthly increase, with just 0.7 per cent of registrations coming from the scrappage scheme, compared with 19.2 per cent during the same period last year. The fleet market rose in June, up 25.3 per cent while sales to small businesses with fewer than 25 cars rose 18.4 per cent. Private demand fell 3.3 per cent. Over the first half of the year private demand has shown the largest rise, up 24.6 per cent, boosted by the scrappage scheme. The scheme closed to new orders in March. Companies which prospered on scrappage fell back in June. Kia fell 15.7 per cent for the month but said its share of the retail non scrappage market stood at 3.1 per cent compared to 2.2 per cent a year ago. Hyundai fell 21.4 per cent in June.

Taken From Motor Trader