The Society of Motor Manufacturers and Traders (SMMT) reveals that car sales heavily decreased and arrived at its lowest point since May 2009. The registration rates for new cars decreased 22% to 131,495 in October.
Market analysts expect further decrease in sales in 2010 due to the lack of confidence on side of British consumers who are still hesitant due to economic instabilities.
Paul Everitt, chief executive of SMMT, explains: "There was a significant fall in October's new car registrations, reflecting the impact of the scrappage incentive scheme at this time last year and some deterioration in consumer confidence. The industry expects the coming months to be challenging with slow, but steady, economic growth feeding through to improved confidence and demand during 2011."
Government spending cuts represent the most significant changes of consumer patterns. The high media attention on government budget cuts fosters a hesitant, deliberative behavior on side of potential car buyers, who seem to wait with large purchases until final consequences of new government policies occurred.
The sales of cars that run with alternative energy increased 13.7% in October and the Ford Fiesta represents the best selling fuel car model.
Luxury car brands such as Porsche, BMW or Bentley all report increased sales compared to 2009.