Interest Rate Rise Piles Pressure On New Car Market

  • July new car market down 4.1 per cent to 168,015 units
  • Year to August total down 4.2 per cent to 1,409,936 units
  • Market shift towards diesel continues with registrations up 2.4 per cent this year

Commenting on the July 2006 new car registration data, SMMT chief executive, Christopher Macgowan said, 'Consumer confidence has clearly taken a knock in the last 18 months and yesterday's announcement from the Bank of England will not help a weaker new car market. Two factors have kept some buyers away from showrooms this year. The first is the effect of interest rate rises, the second is soaring fuel costs. The latter affects 30 million car drivers and is also driving more to consider the benefits of switching to diesel power when buying a new car.'

6 August 2006 Staff

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