Car sales fall in 2011 but exceed expectations

Year-end figures have shown that new car sales fell 4.4% in 2011 compared with 2010.

The Society of Motor Manufacturers and Traders (SMMT) have revealed that a total of 1,941,253 new registrations were recorded last year, compared with a figure of 2,030,846 for 2010 when many people were incentivised into buying and selling cars by the Government's scrappage scheme.

SMMT chief executive Paul Everitt revealed that, though the figures were slightly ahead of industry-wide predictions, 2011 was going to be a "challenging year" for the UK motor industry.

"Weak economic growth will make trading conditions tough in 2012, but record numbers of new and updated models, significantly improved fuel efficiency and exciting new technologies will help to encourage consumers into showrooms."

One of the more encouraging aspect of the figures was the fact that, in the second half of 2011, sales fell just 1.1% compared with the July-December 2010 period.

Registrations in 2011 were supported by fleet sales, with the private market recording a drop in volumes.

Diesel and alternatively fuelled cars took record shares of the market in 2011, with diesel volumes surpassing petrol volumes for the first time.

Once again, the Ford Fiesta was the best-selling new car in 2011, with the Volkswagen Golf the best-selling diesel model.

The supermini segment remains the largest in the UK, with a market share almost unchanged on 2010 at 36.3%. The executive, luxury saloon and dual-purpose sectors all recorded growth in registrations in 2011.