Buoyant car sales expected to dip

• Sales up 19.9% in first six months
• Dip expected towards end of year
• Small car sales still dominate

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Car sales are up 19.9% in 2010, but a dip in demand is expected to hit the industry by the end of the year.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that 1,108,662 new cars were registered by the end of June this year, compared with 924,955 by the same time in 2009.

June 2010 registrations were up 10.8% on 2009 figures.

Scrappage sales accounted for 0.7% of registrations in June 2010 as the paperwork for the final sales in the scheme was completed, whereas last June 19.2% of sales were from the scrappage scheme. This is further evidence of a recovery in the car-buying market.

Despite the rises, registrations still lag behind 2008 levels and, the SMMT says, are likely to slow towards the end of the year.

SMMT chief executive Paul Everitt said: 'The industry still expects challenging economic conditions in the second half of the year and government action to improve access to credit for consumers and business will be important in sustain the momentum of recovery.'

Super superminis
Six of the top ten selling cars are superminis. Vauxhall's Astra was the best selling model in June, however, with more than 10,500 of the cars registered in the month.