Figures released today by the Society of Motor Manufacturers and Traders show that the new car market in the UK was just 1.7 percent down on last year, with over 150,000 new registrations.
Experts put the continuing stabilisation of the car parc down to decreasing levels of consumer caution, and enticing values for fuel economy and finance.
Paul Everitt, the SMMTâ€™s chief executive praised the efforts of those in the motor trade, and particularly highlighted increasing sales in the fleet and business arena. Meanwhile sales in the private sector continue to fall, declining by 18.9 percent over the year to date.
The SMMT remains hopeful that the industry will reach itâ€™s target of 1.93 million units sold in the UK before the end of the financial year, although it appreciates that the economic market is still uncertain.
Sue Robinson, Director of the RMI National Franchised Dealers Association commented: â€œGreat performances for the fleet and diesel sectors which helped to boost the May new car market. However consumers still have a lack of confidence to buy big ticket items such as new cars and this is causing some weakness in retail car market.
That said, with significant offers with areas such as service plans and finance, there is considerable incentive for consumers and businesses alike to purchase new vehicles.â€
The RMI anticipates increasing improvement for the rest of the year and into 2012, hoping for a stronger market in the next year.