Diesel decline cuts car sales
UK new car sales reversed in 2018 at the fastest rate since the financial crisis a decade ago as the industry reeled from a “perfect storm”.
A slump in demand for diesel vehicles, stricter emissions rules and waning consumer confidence ahead of Brexit drove registrations down 6.8 per cent to 2.37 million.
A year of regulatory upheaval and anti-diesel policies concluded with December sales falling by
5.5 per cent to 144,089, the Society of Motor Manufacturers and Traders said.
This was the second annual fall after a 5.4 per cent drop in 2017 and the SMMT predicts a further two per cent fall this year.
It blamed “anti-diesel rhetoric and negative fiscal measures” for a 29.6 per cent diesel sales plunge last year, partially offset by an 8.7 per cent growth in registrations of petrol vehicles and a 20.9 per cent increase in alternatively-fuelled vehicles.
The SMMT called for new policies to increase sales of new low and zero emission cars as data showed falling demand for diesels had led to a second year of CO2 rises.
Its chief executive Mike Hawes said: “The challenges are a perfect storm. A second year of substantial decline is a major concern, as falling consumer confidence, confusing fiscal and policy messages and shortages due to regulatory changes have combined to create a highly turbulent market.
“The industry is facing ever-tougher environmental targets against a backdrop of political and economic uncertainty that is weakening demand so this should act as a wake-up call for policymakers.
“Supportive, not punitive measures are needed to grow sales, because replacing older cars with new technologies, whether diesel, petrol, hybrid or plug-in, is good for the environment, the consumer, the industry and the exchequer.”
The most popular 2018 model was the Ford Fiesta, with 96,000 sales, then the Volkswagen Golf with 65,000. Auto Trader’s Ian Plummer predicted “bargains” in the next few months and said consumers are moving away from traditional ownership to usership models.
He said: “Leasing and subscription models are opening up the market and have the potential to unlock growth as they make accessing a car, including expensive new electric vehicles, easier and more financially attractive.”