Sales of new cars in the UK reached almost two million in 2009, the Society of Motor Manufacturers and Traders (SMMT) reported.

The number of registrations was the lowest level since 1995, sales in the latter half of the year were boosted by the scrappage scheme.

Full-year sales fell 6.4% from 2008's total to 1,994,999 vehicles. New registrations in December rose by 38.9%, helped by consumers looking to beat the VAT increase, the SMMT said.

Excluding sales made under the scrappage scheme, registrations rose by 10% in the month. SMMT chief executive Paul Everitt said the yearly figure was significantly above early expectations.

He added that it reflected the positive impact of the scrappage scheme, which is due to end in February. In the first six months of the year, new car sales fell by 25.9%. In the second half of the year, they rose by 21%.

2010 concerns
There is now concern in the industry that sales will retreat once the scrappage scheme comes to an end. The SMMT estimates that 2010 sales will fall back to below 1.8 million.

"Another tough year awaits the UK motor industry in 2010, with new car registrations expected to be below 2009 levels and only limited recovery in the van and heavy commercial vehicle markets," Mr Everitt said. "Sustaining the progress made in the latter part of 2009 will require stronger demand from fleet and business buyers, alongside the greater availability and affordability of credit and finance."

Source: BBC News

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