New car sales start to brake

Demand for diesels dives by 15%

CAR sales have fallen for the third month running – with demand for diesels diving nearly 15%. Figures from the Society of Motor Manufacturers and Traders (SMMT) showed that 243,454 new cars took to the road last month, down 4.8% on a year ago. The main reason was a rapid fall in diesel car sales. It comes amid threats by councils to slap levies on diesels to tackle air pollution, and the continuing fall-out from Volkswagen’s emissions cheating scandal. According to the SMMT, 103,564 dieselengined cars were sold last month – nearly 18,000 fewer than last June. Sales of petrol cars rose 2.5% to 129,169. Diesels now account for 42.5% of new cars sold, down from 47.5% a year ago, and the lowest for seven years. The biggest increase was for “alternative fuel vehicles” – including electric and hybrid cars – where sales jumped 29% to 10,721. The figures came on the same day that Volvo announced it would make only electric cars or hybrids from 2019. Electric, hybrid and other alternative fuel cars still only account for 4.4% of all cars sold, but that’s up from 3.2% just a year ago. Mike Hawes, SMMT chief executive, insisted: “Demand for new cars has started to cool but the numbers are still strong and the first half of the year is the second biggest on record.” The weak sales will add to evidence of a slowdown in consumer spending overall on the back of rising inflation and lacklustre wage growth.