Press Association 

Four-wheel drive sales drop amid high fuel prices

High fuel prices and government legislation appears to be hitting sales of four-wheel drive vehicles, figures out today showed
  
  

A petrol station in central London

High fuel prices and government legislation appears to be hitting sales of four-wheel drive vehicles, figures out today showed.

New registrations of four-wheel drive last month dipped 18% compared with May last year, the Society of Motor Manufacturers and Traders (SMMT) said.

Increases in road tax for gas-guzzling vehicles such as four-wheel drives have been the subject of much debate when petrol and diesel prices at the pumps are at record highs.

The dip in sales contributed to an overall drop of 3.5% in total new vehicle registrations last month.

The May 2008 total was 179,272 and represented the first monthly fall since February - the dip following two months of growth that surprised the motor industry.

Demand for private cars fell 9.5% last month, while business car sales were down by 15.4%.

Sales of mini-sized cars soared 120% last month, however, and this segment is up 27.4% for the year so far.

Although diesel now costs around 130p a litre, sales of diesel-powered cars still rose 8.4% last month.

The SMMT chief executive, 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."

The US market is suffering similar problems. Hummer's owner, General Motors, is reviewing the future of the brand which was originally a civilian version of the US military's armoured Humvee. It is considering selling the business due to plunging US sales.

Top 10 models in May 2008

1. Ford Focus
2. Vauxhall Corsa
3. Vauxhall Astra
4. Ford Fiesta
5. Volkswagen Golf
6. Peugeot 207
7. Vauxhall Zafira
8. Vauxhall Vectra
9. BMW 3 Series
10. Ford Mondeo

 

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