Business Weekly - Cambridge, UK

Commenting on the Society of Motor Manufacturers and Traders (SMMT) new car registration figures for June 2008, published today, Paul Dickinson, Relationship Director for Motor Retail, Barclays Commercial Bank Eastern said:

"After a resilient first quarter, June's figures show a marked decline in new car demand which chimes with reports we've had from car manufacturers that consumers are putting off the purchase of a new car as disposable incomes come under pressure.  
 
"Those that are buying are showing an increased interest in small cars that are diesel fuelled as consumers focus on fuel efficiency and value for money. Brands that have already focused on this market will benefit from this growing trend.

"Prospects for the second half of the year are looking challenging, but those that have already developed better fuel efficient models and established their green credentials will be in a strong position."

Summary:

• Diesel registrations rose 4.5% to 89,470 units taking 42.8% market share
• Compared with June 2007, new car market fell 6.1% to 209,190 units
• Overall year-to-date figures show 1.6% fall to 1,247,479 units, as forecast

For further information contact:

Irene East
Barclays Public Relations, Eastern
01604 743980
07775553313
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