Luxury motor industry looks set to crash

14:56 07 August 2008

As the recession hits home, car manufacturers have charted a record fall in the number of luxury motors sold in July.

Statistics show the steepest downturn in business since December 2006 with a 13% fall in luxury vehicle sales.

Sumptuous sales fall

Aston Martin suffered a 44% drop and Bentley sales fell by 46%, causing heightened fears of redundancy at their factories.

Land Rover sales have also fallen, by 38%.

However Aston claim the figures do not indicate poor prospects within the company, as business overseas (which is not included in these figures) is still healthy.

Worrying times

The Society of Motor Manufacturers and Traders (SMMT) have stated that the fall was greater than expected.

Old favourites Top designs that just keep selling.

Chief executive Paul Everitt said: "Raising fuel costs and household bills, alongside falling house prices are making consumers reluctant to commit to new expenditure".

Aston Martin look set to stall as they unveil the worlds most expensive and exclusive supercar, the One-77, at a cost of $2.3 million. It beats the previous record holder, the Bugatti Veyron, which retails at around $1.4 million.

Ebbs and flows

The SMMT have stated that businesses will have a much greater idea of the downturn in sales and underlying market trends come September's figures, as July and August sales have a tendency of being low.

The argument to support this is that September sees the release of new registration plates. Traditionally this leads to a peak in sales.