Over 1million cars sold in first six months of year for first time since Covid
THE number of cars sold in the first six months of the year revved past the 1 million mark for the first time since the pandemic, stats show.
However, the figures from the Society Of Motor Manufacturers and Traders found growth is being powered by business and fleet buyers — as cash-strapped drivers put off buying a new motor.
Sales in the first six months of the year rose by 6 per cent but slowed down in June to 1.1 per cent.
Sales to the fleet sector last month rose by 14.2 per cent as firms took advantage of tax incentives while sales to regular drivers fell 15.3 per cent.
The case is even more extreme in electric cars with fewer than one in five being bought by private buyers.
Battery powered vehicles now account for 16.6 per cent of the new car market, still below the government’s target of 22 per cent by the end of this year.
INTEREST CUT WAR
HIGH street banks are competing to cut mortgage rates in a big boost for homebuyers and sellers.
Halifax, HSBC, Barclays, Santander and NatWest have all revised their deals this week amid hopes the Bank of England could cut interest rates next month.
The average five-year fixed rate is 5.93 per cent, according to Moneyfacts.
Barclays’ rate for a 85 per cent home loan with no fee has been cut to 5.43 per cent.
HIP HOORAY AT INVESTMENT
THE arrival of an activist investor at Smith & Nephew gave shares in the medical device maker a jolt of excitement yesterday.
Cevian, Europe’s biggest activist firm, disclosed it had built up a five per cent stake in Smith & Nephew, which makes hip and knee replacements and wound treatments.
Smith & Nephew shares soared more than seven per cent to value the FTSE 100 firm at £8.6billion.
Stockholm-based Cevian has previously taken positions in Vodafone and Aviva.
The company could try to pressure Smith & Nephew to follow the likes of gambling firm Flutter and plumbing business Ferguson in switching its London-listing to New York.
Smith & Nephew makes most of its revenue in the US but boss Deepak Nath has previously shrugged off questions saying the best way to improve the firm’s share price is by turning around its orthopaedic business.
Cevian said it saw “the potential to create significant long-term value by improving the operating performance of its business”.
The stake comes two months after an investor revolt against Nath’s £9million pay packet. Advisory groups argued the pay was excessive.