Business

Brakes put on car sales in the north

TABLE TOPPER: Ford Fiesta is the best selling new car in Northern Ireland
TABLE TOPPER: Ford Fiesta is the best selling new car in Northern Ireland TABLE TOPPER: Ford Fiesta is the best selling new car in Northern Ireland

CAR sales are at a record high in the UK reaching an astonishing 1.3 million in the first six months of the year.

But in Northern Ireland - sales are down on the same period last year, according to the Society of Motor Manufacturers and Traders (SMMT).

Economist Richard Ramsey said it showed consumer confidence in the north was still well behind Britain.

And he said with George Osborne's budget looming tomorrow, there "will be little in the way of cheer for consumers".

It is tipped the chancellor may reintroduce fuel duty hikes which combined with creeping petrol and diesel prices will put a further dent in motorist's confidence.

The latest statistics from SMMT showed there were 1,371,932 new cars registered in the UK in the first six months of the year - a rise of 6.94 per cent on the same period in 2014.

Northern Ireland was the only part of the UK to experience a decline with the 33,409 registrations over the six months representing a 0.59 per cent decline.

However, the June figure of 6,057, was actually 4.67 per cent better than the same month in 2014.

Mr Ramsey, chief economist for the Ulster Bank said the data was "unsurprising given that the general economic recovery in Northern Ireland has lagged behind Britain".

"Sales of new cars are a definite sign of consumer confidence," he said.

"This shows that the Northern Ireland is still caution when it comes to making big purchases.

"However the figures show, in line with other surveys like the PMI, that after a disappointing first quarter, things have picked up in the second quarter.

"I would say though that new car sales have not been as good as I would have expected over the first six months of the year."

Small cars continue to dominate the north's new car market with the Ford Fiesta and Vauxhall Corsa first and second respectively on the best selling table.

Ford has two other models on the list with the Focus third and the Kuga eighth.

Volkswagen's Golf and Polo and fourth and sixth most popular cars respectively.

There were entries too for Nissan Qashqai (fifth), Peugeot 208 (seventh), Hyndai ix35 (ninth) while the Vauxhall Mokka rounds off the top 10.

The Fiesta is also the top-selling new car in the UK as a whole.

Around one in six buyers across the UK bought a British-manufactured vehicle so far this year - the highest level in five years.

Low interest rates and attractive finance deals, combined with a stream of new models featuring the latest technologies, encouraged consumers to purchase new cars.

June marked the 40th consecutive month of growth in the overall new car market with a 12.9 per cent increase over the same month last year to 257,817 vehicles.

SMMT chief executive Mike Hawes said: "It is still a great time to buy a new car in the UK, and it is encouraging to see more consumers choosing British models.

"This is important for the wider economy, with 799,000 people now employed across the UK automotive sector, including retail.

"We anticipate a flatter second half of the year as the market finds its natural running rate."

Top 10 new cars

1 Ford Feista 286

2 Vauxhall Corsa 236

3 Ford Focus 197

4 Volkswagen Golf 183

5 Nissan Qashqai 144

6 Volkswagen Polo 135

7 Peugeot 208 129

8 Ford Kuga 127

9 Hyunda ix35 126

10 Vauxhall Mokka 111