Car sales are on the up 0

For the first time in over a year, car sales have risen. What does this mean for the UK car industry? How much should we read into it?

August saw 59,346 cars sold, which is considerable increase from exactly a year ago from that point.  Overall, sales of monthly car registrations have increased. The figure hasn’t increased since June 2010. Sales of fleet cars have also seen slight improvement in sales. It has been mentioned that there has been a 3.3% increase.

One clear reason for this recent success is the fact that many car manufactures are investing in new greener technology within their cars. More and more motorists are becoming increasingly frustrated at the rising cost of fuel and are also becoming more aware and wary of damaging the environment.

Greener cars are more commonly in the form of smaller vehicles. The Ford Fiesta is still the top selling car in the UK. The mini class (cars such as the Vauxhall Agila and the Toyota IQ) experienced the best growth of the year, with a 34.5% increase. The supermini class (Ford Fiesta and the Fiat 500) also had an impressive sales increase with it rising by 17.6%. Could this now be the pattern for years to come? Are motorists swaying away from more fun to drive but expensive gas guzzling cars?

Finance deals have also been improved to attract more potential buyers. Other incentives such as Vauxhall’s lifetime 100,000 warranty plan may have also helped car sales increase.

This is a welcoming piece of news, but many experts will not be reading too much into what it means for the automotive industry. Whereas many may think that it shows that the car industry is making improvements and is on the way up, August has only accounted for 2.7% of all car sales in 2011.

To gather a more accurate reading of how well the UK automotive industry is doing, it would be better to view the statistics for September and the upcoming months. A major reason being that “17%” of the full years registrations are said to be accounted for, with this being a very important month for the UK car industry.

Some experts are even predicting that the outlook for the car industry is indeed very unwelcoming, despite this recent news. We’ll all have to wait and see whether this is a sign of improvement or just a flash in the pan.

Servicing Stop: Nationwide car servicing. Saving up to 60% on car service dealer prices. Contact us for Car Servicing Sutton and other London Boroughs.