Sales slump for budget car makers

New car sales fell by 17.5% in August and the motor industry is expecting more tough months to come as the scrappage scheme becomes a distant memory.

Figures from the Society of Motor Manufacturers and Traders revealed that around 55,000 cars were sold last month compared with around 66,000 in August 2009.

Car makers who benefited from the scrappage scheme throughout 2009 and the first half of 2010 were hit hardest - with Japanese car maker Daihatsu selling just three cars in August.

August is usually a barren month in the dealership and will account for just 3.3% of annual car sales. The decline is expected to continue through to the year's end, but total total annual sales, to date, are still up by 13% with 1,300,413 vehicles sold compared with 1,149,110 in 2009.

Market experts reckon about two millions cars will be sold in the UK by the end of the year - a 1.2% increase on 2009.

It's been a rough ride for a many car makers, particularly for budget brands that experienced a boom during the scrappage scheme. Daihatsu, for example, that sold 130 cars in August 2009, experienced 98% drop in August.

Other more recognised brands fared poorly too: Fiat's sales dropped by 65.5%, Chrysler's collapsed by 78.79% and Alfa Romeo dropped by 46.51%.

Japanese manufacturers also struggled with Hyundai, Toyota, Suzuki, Subaru and Mitsubishi all experiencing a 35% to 45% drop in figures across the month.

Many premium manufacturers, on the other hand, did well. Bentley registered a 108% increase in sales (25 cars as opposed to 12), Porsche managed 87% and Aston Martin clocked a 65% rise in sales.

Saab, with its future appearing secure after the purchase by Danish supercar company Spyker, sold almost three times as many cars in August 2010 as it did in 2009 - 92 against 35. BMW managed a small increase on the previous year, of 4.5%, yet both Audi and Volkswagen lost sales, with downfalls of approximately 4% and 13% respectively.

“New car registrations were down 17.5% in August and conditions will remain challenging through the rest of the year," said Paul Everitt, SMMT chief executive. “The industry enjoyed a better than expected first half of the year and, despite the difficulties, SMMT is forecasting that new car registrations will close just ahead of 2009 figures.”