UK Car Sales Fall 23 pct In Year To October

Nissan Motor shut its factories in northeast England for two weeks last month and has shortened its work week for the future.

British new car registrations fell by an annual 23 percent in October, the steepest decline this year, the Society of Motor Manufacturers and Traders (SMMT) said on Thursday.

Total sales in the year to date were 8.8 percent below levels the same time last year at 1.92 million, the SMMT added, saying it was cutting its full-year sales forecast to 2.15 million vehicles from 2.26 million expected just last month.

"October has proved another difficult month for the UK motor industry," said Paul Everitt, SMMT chief executive.

The downbeat data comes hours before the Bank of England is due to make its latest interest rates, and Everitt urged a cut. Economists polled by Reuters expect rates to be reduced by at least half a percentage point from their current 4.5 percent.

"Action is needed to help restore consumer confidence and encourage buyers back to the showrooms," Everitt said.

Nissan Motor shut its factories in northeast England for two weeks last month and has shortened its work week for the future.

Britain's Office for National Statistics said on Wednesday that weakness in the auto sector was one of the main factors to have driven down British manufacturing output in September.

Price pressures were evident in buyers' choices, even though petrol prices have fallen significantly since oil hit a peak of almost $150 a barrel in July.

Diesel cars, which are usually cheaper to run over high mileages, achieved a record market share of 45.6 percent, and the mini segment was the only sector to show sales growth.

General Motors' small Vauxhall Corsa -- branded the Opel Corsa in continental Europe -- remained the best-selling model in October, with Ford's Fiesta in second place.

Ford was the best-selling marque overall, with 16.6 percent market share compared to 13.5 percent in October last year. Vauxhall followed at 15.1 percent versus 15.0 percent a year ago and Volkswagen was in third place with a 9.1 percent share.