Automobile News

In what should set the alarm bells ringing for the automobile industry, car sales have taken a nose dive in the UK, with October 2008 figures standing at 128,352, a sharp decline of 23 percent on October 2007. The scenario is even more pathetic for the private sales which by contrast have seen an uncharacteristic decline of 28.8 per cent.

The situation is so critical that the October decline has been rated as the worst year-on-year monthly drop since June 1991. The unhealthy trend first started in August and September this year, and gained momentum in October. Many automobile peripherals, such as sat navs, entertainments systems, multimedia monitors, and more, have witnessed equally staggering declines in sales figures. Many have credited the slump to the credit crunch that is gripping the nation.

Society of Motor Manufacturers and Traders (SMMT) executive Paul Everitt has acknowledged the difficulties surrounding the automobile industry and stressed that firm steps are the need of the hour to restore customer confidence and entice buyers back to the showrooms.

He even hinted that cuts in interest rates with the benefits being swiftly passed on to consumers are a probable solution. Scrapping planned increases in vehicle excise duty (car tax) and maintaining public expenditure on new vehicles are also believed to be essential part of the package required to bail out the industry from the turmoil. Paul in addition, also emphasized that the time is here for the European Union to take a cohesive step towards ensuring support for a continued investment in new, lower carbon vehicle technologies.