U.K. Auto Makers Scale Back 2011 Sales Forecast
Executive Summary
This year’s sales projection has been revised downward because of continued weak local demand and economic jitters elsewhere in Europe, but 2012 should see recovery, the U.K. manufacturers group says.
The U.K. auto industry lowers it 2011 sales forecast to 1.92 million units, a year-on-year drop of 5.3% despite a better-than-expected performance in September.
The Society of Motor Manufacturers and Traders scaled back its forecast after the key September market saw sales dip 0.8% to 332,476 units.
January-to-September deliveries fell 5.0% to 1,553,094 units.
SMMT CEO Paul Everitt says last month’s market outperformed expectations, despite negative numbers.
“We expected 2011 to be a challenging year and we are on track for a full-year total of around 1.92 million new car registrations, 5% below 2010,” he says in a statement.
The SMMT reduced its 2011 forecast because of continued weakness in U.K. domestic demand and the uncertainty across European economies.
“It is important government acts to sustain an investment-led recovery and implements measures to encourage more private-sector investment in R&D (research and development) skills, new plants and machinery,” Everitt says.
The organization predicts sales will rebound to 1.96 million units in 2012.
Fleet sales propped up September results, rising 7.3% to 156,634 units, while private sales slipped 9.3% to 155,135.
After nine months, fleet sales were up 4.1% to 802,928 units, while private sales slid 14.7% to 668,482.
Ford scored a one-two punch for September and the year’s first nine months with its Fiesta and Focus models topping the sales charts.
The Fiesta sold 15,647 units in September for a 9-month total of 77,198, ahead of the Focus with 14,754 deliveries and a running total of 67,672.
With diesel cars’ share of the market growing to 49.9% year-to-date, average new-car carbon-dioxide emissions were 138.5 g/km, a 23.5% improvement over the full-year 2000 level of 181.0 g/km, SMMT says.
The van-and-truck segment saw sales rise 8.8% to 43,442 units in September, boosting the 9-month total 18.8% to 229,304.
Van sales climbed 9.4% for the month to 38,644 units. For the year so far, van sales totaled 199,684 units, an 18.5% improvement.
“Confidence returned to the commercial-vehicle market in 2011, and the September market continues the upward trend,” Everitt says.
“The future state of the economy is certainly a concern, but it’s clear that owners and operators are investing in new, fuel-efficient vehicles to help weather the storm of high fuel prices.”
Ford remained the clear U.K. market leader in September with 54,133 units for a 14.4% market share. Year-to-date, Ford's market share is 15.2%, up 0.1 of a percentage point.
Ford car sales in September of 43,350 units were down 6.5% from prior-year’s 46,389.
Year-to-date, Ford’s car sales of 214,628 gave it a 13.8% market share, compared with 11.8% a year earlier.
Ford's 46-year hold on CV sales leadership in the U.K. tightened as September sales rose from 9,972 units to 10,783, and the 9-month total grew from 46,984 to 56,480.
Sales in the U.K. by BMW Group, comprising BMW and Mini, rose 10.5% to 128,874 units in the first nine months, although September deliveries lagged with a 6.2% increase to 27,874.
Tim Abbott, U.K. managing director-BMW Group, says corporate customers account for much of the auto maker’s sales growth.
“However, our dealers are facing some of the most difficult trading conditions since 2008 and, looking ahead to the remainder of the year, consumer demand in the retail sector of the market remains volatile,” Abbott says in a statement.
BMW Group’s 9-month tally includes 90,727 BMWs and 38,147 Minis.
Hyundai U.K. had a record September, with deliveries jumping 37.1% to 11,562 units.
Managing Director Tony Whitehorn says the Korean auto maker has gained considerable momentum over the past three years, despite economic uncertainty.
“More cars on the road has led to greater consumer awareness of our company and our products, with sales more than doubling since 2008,” he says in a statement.
Nissan U.K. also bucked the market trend with sales rising 17.8% to 18,573 units. The top sellers were British-built cross/utility vehicles: the Qashqai (6,068) and Juke (4,475).
Spanish brand SEAT, which aims to become a U.K. fleet manufacturer of choice, doubled its September sales 100.7% to a record 3,830 units.
SEAT launched its fleet strategy in late 2009 and Sally Livingstone-Dennis, U.K. national fleet sales manager, says the latest results underline the auto maker’s success in a tough market.
