http://www.planetark.com/dailynewsstory.cfm/newsid/23360/story.htm

Car Sales Power to New Record

UK: January 8, 2004

LONDON - New car sales in Britain set a new record of almost 2.6 
million in 2003, the Society of Motor Manufacturers and Traders says, 
but it warns that 2004 will be a tougher year for car makers.

It said the new total, a rise of 0.6 percent from 2002's record 
figure, was driven by a strong economy, low interest rates and a host 
of new models but that rising interest rates this year would probably 
brake sales to around 2.5 million.

Sales of diesel-engined cars continued to surge and have doubled 
since 2000, taking a record 27.3 percent of the new car market during 
2003. The Ford Mondeo was the best-selling diesel car.

Diesel's market share was nearly 31 percent in December alone, making 
it likely that the share will continue to climb in 2004, helped by 
the new generation of thrifty but fast direct-injection turbo diesel 
engines.

Diesel's market share in the UK, however, is still a lot lower than 
many other European countries where diesel fuel is much cheaper, due 
to lower taxes, than in Britain, where it is slightly more expensive 
than petrol at around 78 pence a litre.

Britons also have a growing penchant for smaller cars, which will 
please environmentalists. The class known as "superminis" -- which 
includes the Vauxhall Corsa and Ford Fiesta -- grew 5.1 percent last 
year to take a record market share of 34 percent.

Story by Ashley Seager

REUTERS NEWS SERVICE


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