Land Rover leads lift in sales in key month
Oct 7 2009 by John Cranage, Birmingham Post
AA president Edmund King said: “The increase in new car sales is not only beneficial to the economy and employment but will also be a boost to the environment and road safety as the vast majority of cars bought under the scrappage scheme are cleaner, greener and safer than those they have replaced.”
RAC motoring strategist Adrian Tink said: “Today’s figures are a welcome sign for manufacturers and motorists alike. The scrappage scheme has clearly had some success in driving sales and its extension will allow another 100,000 motorists the chance to buy a cleaner, safer, more reliable car.
“However, it remains to be seen how the industry will be impacted once the extension to the scheme ends, and when VAT returns to 17.5 per cent in January.”
David Raistrick, of professional services firm Deloitte, said: “September is an important month for new car registration figures given the demand for new number plates, hence it is critically important that the figures have risen significantly.
“The 11.4 per cent rise in new car registrations exceeds market expectations and is a much more promising increase than the previous two months’ rises, giving hope that the industry is on the slow road to recovery.
“Reports suggest that scrappage currently accounts for almost 25 per cent of new car sales and this has no doubt added to September’s increased registration figures.
“It is a relief for the industry that the scheme has been extended. The extra 100,000 vehicles will hopefully maintain the momentum that the automotive sector needs to achieve a long-lasting recovery.”
A Business Department spokesman said: “We are pleased to see from today’s industry figures that the scrappage scheme is continuing to support the automotive sector. With a third consecutive month of increases for the car sales this is good news for manufacturers and dealers alike.
“We hope to see the extension of the scheme, announced last week, continuing to offer positive impacts in the automotive sector and wider manufacturing.”
Despite rising sales figures, the scrappage scheme has its critics, however.
Writing on thegreencar website, Andrew Davis, director of the Environmental Transport Association, said of the scheme: “This is little more than a panicked way of propping up the industry as, given time, those cashing in the grant would most likely have bought the new car anyway.”
He went on to dismiss claims that scrappage was helping the environment by promoting sales of cleaner, more fuel-efficient vehicles, saying it failed to take into account the amount of energy required to build them.
