November Car Sales Slip, But U.K. on Track to Top ’11 Forecast

New-car sales fell 4.2% in the U.K. in November to 134,027 units, but the Society of Motor Manufacturers and Traders says this was 5,000 units more than predicted.

After 11 months, new-car deliveries were down 4.5% to 1,822,065 units. SMMT says although the market is on track to better the full-year forecast of 1.92 million, caution remains over 2012.

Diesel and alternative-fueled cars both took record market shares in November. Diesel sales rose 0.5% to 74,539 units for the month, representing a 55.6% share of the segment. Through November, diesel deliveries totaled 920,983 units, a 5.4% increase good for a 50.5% share.

Alternative-fueled-vehicle sales jumped 22.5% to 2,146 units for the month, giving the segment a 1.6% market share. The year-to-date total, up 9.9% to 23,601, represented 1.3% of the market.

“While the November new-car market saw a 4.2% (sales) dip, the fuel efficiency of new models broke all records with the average new car achieving 4.48 km/L (22.3 mpg),” SMMT CEO Paul Everitt says in a statement.

New-car deliveries over the past three months were just 0.9% lower than a year ago, and volumes over the past six months were down a modest 1.8%. However, SMMT says the market continues to trend some 20% below pre-recession levels.

Market stability in recent months is at odds with growing concerns over the economic picture.

While the government’s autumn statement announced some welcome measures to stimulate growth, the latest forecasts for the U.K. economy and concerns over the eurozone are unsettling, SMMT says.

“The market continues to be supported by growth in the fleet market and customer incentives.”

Despite the government’s delay of a 3-pence-per-liter rise in fuel duty, the cost of fuel in the U.K. still is among the highest in Europe, “so customers are sure to welcome the 29.3% improvement in new-car fuel efficiency over the last 10 years,” Everitt says.

The Ford Fiesta led November sales with 6,195 units, giving it a leading year-to-date 90,701. The Ford Focus slipped to fourth place for the month, with 4,910 deliveries and an 11-month total of 77,785.

The Toyota Corsa was the No.2 seller with 5,234 units, putting it in third place after 11 months with 72,493 deliveries.

Combined sales in the van and truck segment improved 19.1% to 27,187 units in November, for an 11-month total up 18.1% to 280,071.

Van sales climbed 18.6% to 22,684 units in the month, boosting the yearly total 17.4% to 241,738. Truck deliveries increased 21.5% to 4,503, with year-to-date deliveries up 22.5% to 38,333.

“Both the van and truck market saw growth, reflecting sustained investment in new vehicles by businesses,” Everitt says.

“London’s new low-emission zone comes into effect Jan. 3, requiring drivers of older vans and trucks to upgrade their vehicles or pay a daily fee, so we expect to see a boost to registration levels next month and through the early part of 2012.”