High fuel costs hit UK car sales
The
UK Society of Motor Manufacturers and Traders (SMMT) disclosed that the country's new car sales fell 4.8 percent year on year to 227'623 units in June.
High interest rates and expensive fuel costs caused a slump in June's sales. Another factor that affected the sales can be MG Rover's recent collapse.
For the first six months of 2005, car sales also dropped 6 percent year on year to 1.23 million units.
SMMT chief executive Christopher Macgowan indicates that the new market could not sustain the record levels seen in the first half of 2004. He also added that dealers may be feeling the distress, but there is good news for consumers.
Macgowan points out that car prices have dropped 10 percent since 1998 and producers are trying to lure customers with financing deals and special offers.
While petrol car sales showed decline, demand for diesel vehicles continued its robust pace, rising 23 percent to 77'049 units in June.
There has also been an increase in the number of cars bought that are produced outside of the
UK.