U.K. Car Sales Fall Again in July, But Other Segments Hold Their Own

Amid continuing economic uncertainty, U.K. new-car sales slipped 3.55% in July to 131,634 units, but despite the 13th successive monthly decline, the industry says it is still on track to meet its full-year forecast of 1.93 million units.

Passenger-car sales over the first seven months were down 6.7% to 1,161,272 units.

Ford Fiesta U.K.’s top-selling car again in July.

Fleet purchases supported the market, up 2.1% in July to 75,505 units and 3.3% to 613,320 year-to-date.

Private new-car sales declined 9.2% to 50,574 units in July and were down 17.3% to 488,771 units in the first seven months.

Society of Motor Manufacturers and Traders CEO Paul Everitt says the sales slump reflects slower economic expansion, as high inflation and modest wage growth dampen consumer confidence.

“Robust demand in the fleet sector helped to bolster weaker private demand,” Everitt says in a statement. “While the coming months remain challenging, performance in the second half of 2011 is expected to keep the market on course to reach around 1.93 million units.”

Diesel-powered car sales totaled 68,953 units for the month and accounted for 52.4% of the segment. Year-to-date, deliveries were up 6.6% to 583,391 units for 50.2% of the market.

SMMT says Vauxhall was the top-selling diesel in July, just ahead of the year-to-date best-selling VW Golf.

Ford’s Fiesta (6,695 units) and Focus (6,235) were the sales leaders among gas-powered cars in July, continuing their domination of the top 10 best-sellers year-to-date. The Fiesta sold 58,338 units after seven months and the Focus, 50,060 units.

SMMT data shows van and truck sales up 3.0% year-on-year to 20,681 units in July, raising the 7-month total 21.4% to 172,811.

Truck sales for July climbed 27.5% to 3,519 units, for a year-to-date increase of 25.7% to 22,411. Van deliveries slipped 0.8% in the month to 17,162, leaving the year’s total up 20.7% to 150,400.

“July saw the first drop in the volume of vans registered following 17 consecutive monthly increases, reflecting a more uncertain period for the economy,” Everitt says.

Truck posted their 10th straight monthly sales rise, he says, and the industry is optimistic for the remainder of 2011, with van and truck deliveries on track to reach 300,000 units by year’s end.

Industry sales-leader Ford increased its U.K. market share in each sector in which it competes – cars, light- and medium-commercial vehicles.

Ford saw a total vehicle share for the month of 15.5%, and 15.4% for the year to date, both up compared with year-ago.

The Ford Transit Connect remained the U.K.’s best-selling CV with 4,457 deliveries in July, up from prior-year’s 3,905 and recording a 7-month total of 33,760, up from 24,987.