New figures show high fuel prices and government legislations are hitting the sales of SUVs hard. Registrations of four wheel drive cars dropped 18% last month, the Society of Motor Manufacturers and Traders said.
Petrol and diesel prices are record highs and the increase on road tax for large gas guzzling vehicles has been a topic of debate amongst motorists and manufacturers. As a result of the decrease in SUV scales, the total number of new registrations last month is down by 3.5%.
The total for new registrations in May 2008 tallied up at 179,272. The statistic showed the first monthly fall since February. The motor industry was taken off guard by the decrease seeing as it occurred after two months of increased sales.
Although the SUV sales are down, sales for smaller cars are soaring up 120% last month. Smaller cars are up 27.4% for the year so far.
The US car market is enduring comparable problems. The brand Hummer, owned by General Motors, is evaluating the brand which is models of the US military's Humvee. General Motors is considering selling the company due to a vast decrease in sales.
Chief executive for the Society of Motor Manufacturers and Traders, Paul Everitt said: "The slowdown in the overall new car market in May comes as no surprise and reflects concerns across the economy.
"The figures are in line with our forecasts for 2008, and we expect a tough year ahead. Vehicle manufacturers and dealers will have to work hard to attract consumers, who are facing increasing household and motoring expenses."
Posted under Articles, Environmental News
This post was written by Christine Pinella on June 5, 2008
