Company cars drive rise in new car registrations

New car registrations were up 10.8% in June after an increase in company car sales boosted the UK car market

Despite fears that the industry would be hit by the end of the government’s scrappage scheme, a a 25.3% rise in the fleet market helped to sustain growth and new car registrations climbed by 19.9% in the first half of 2010.†

Meanwhile, private demand for vehicles was almost unchanged, down 3.3%. Over the first half of the year private demand has shown the largest rise, up 24.6%, boosted by the scrappage scheme.

Paul Everitt, chief executive, at The Society of Motor Manufacturers and Traders said: “The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and businesses will be important in sustaining the momentum of recovery.”

There are fears, however, that the market will suffer in coming months as a result of cuts in public spending and rises in value added tax (VAT).

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