New car sales for May 2010, announced today, show that new cars sold in the month were 13.5 per cent up on May 2009, the eleventh consecutive monthly increase despite expected market decline due to the end of the scrappage scheme. This growth highlights the weakness of the year 2009, with May volumes still 26,177 units down on the 2008 level.

Growth was strengthened by fleet and private markets, with gains of 16% and 12.3% respectively.

“2.7% of the car registrations can be attributed to the scrappage scheme, with the final few scrappage registrations feeding into the May market. The scheme has had a long lasting effect, with an average of 17% of monthly new car registrations since it began in May 2009. The importance for the remainder of the year will be consumer confidence, it is vital that in the forth coming budget on the 22 June that the chancellor recognises the importance of consumer spending to the economy.” Commented RMI Director, Sue Robinson.