CAR INDUSTRY

Plummeting demand for diesel vehicles saw the new car market report its 11th consecutive month of falling sales, according to industry figures – but with Scotland bucking the trend.

Just under 81,000 new cars were registered in February – down 2.8 per cent on the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).

However, Scotland saw 5,448 registrations during the month, a rise of just over 5 per cent compared to last year.

The Uk-wide drop was driven by a 23.5 per cent fall in the number of new diesel cars bought, a market share of just 35 per cent last month, compared with 44.5 per cent in February 2017.

Registrations of petrol cars were up 14.4 per cent in February, while demand for alternatively fuelled vehicles such as hybrids and pure electrics increased by 7.2 per cent.

Overall, around 258,000 new cars have been registered so far this year, a decrease of 5.1 per cent on the same period in 2017. Howard Archer,

0 Falling demand for diesels made it another weak month for dealers

DR HOWARD ARCHER chief economic advisor to the EY ITEM Club said another month of declines “points to a sustained loss of momentum in the sector”. Dan Hutson, of insurance site comparethemarket.com also said the latest figures showed the electric vehicle revolution “has not yet left the blocks”.

“There is clearly more to do to get drivers comfortable with electric vehicles, particularly on battery life and charging infrastructure,” he said.

Although February is traditionally one of the quietest months of the year for the automotive industry ahead of the March number plate switch, changes to the vehicle excise duty (VED) rate are also being blamed for weak sales. RAC research found the vast majority of drivers buying new cars are paying significantly more following the changes.

In November’s Budget, Chancellor Philip Hammond announced a tax hike on new diesel cars from 1 April.

All diesels are expected to be subjected to a one-band increase in the first-year VED

“Thefactthatfebruary marked an 11th successive decline of falling car sales points to a sustained loss of momentum in the sector.”