Nissan recently had to cut Micra production
New car sales in the UK fell by over a fifth year-on-year in February, industry figures have revealed. Following the announcement there have been calls for more incentives for car buyers to kick-start sales.
The Society of Motor Traders and Manufacturers said that the sales of new cars were 21.9% lower last month than a year ago, at 54,359. ‘
'New car registrations continue to decline and although the government recognises the strategic importance of the UK motor industry, urgent action is still needed,’ said Paul Everitt, SMMT chief executive.
‘It is imperative that UK government increases the pace in responding to industry proposals for a scrappage scheme and access to finance and credit.’
Carmakers including Jaguar Land Rover, Honda and Ford have all cut production and workforce in response to the sharp drop in sales. Scrappage schemes would encourage people to trade in older cars for more efficient new models and have seen some success in Germany and Spain.
Germany’s carmaking association said that the incentive increased nationwide sales in February by 22%. Everitt said that around 850,000 workers in the UK are dependent on the car industry and a collapse would affect the whole economy.
February is typically one of the lowest volume months for new car registrations, being just prior to the registration plate change in March. February typically accounts for just 3.4% of annual sales, compared with 18% in March.
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