Although registrations fell by 11.5% in November to 139,875 units, performance is still ahead of forecast according to SMMT.

New car market remains 3.4% up over the first 11 months of the year at 1,907,029 units. The year is set to end up on the 2009 outturn by around 2% at over 2.03 million units. Recovery in fleet volumes is up 10.7% over the year to date, which is supporting the overall market.

"New car registrations fell by less than expected in November with demand from the fleet sector helping to offset the market rebalancing following the end of the Scrappage Incentive Scheme," said Paul Everitt, SMMT chief executive. "Registrations are expected to fall next month, but demand may benefit from motorists looking to avoid the January VAT rise. This factor, coupled with the strength of the first half of 2010, means year-end volumes are expected to lift to over 2.03 million units, 2% up from last year. Next year will continue to be challenging as consumer spending tightens and government's austerity measures take effect."