New car registrations set for annual fall as numbers drop
NEW CAR registrations appeared on course for their first annual fall since 2011 after a 9.3 per cent tumble in September, a month which normally accounts for around 15 per cent of demand.
Sales were hurt by business and political uncertainty as Britain prepares to leave the EU and confusion over government plans on diesel and petrol cars, which could include new levies or restrictions, the Society of Motor Manufacturers and Traders (SMMT) said.
Sales totalled 426,170 vehicles with demand falling across the board,
SMMT data showed, leaving year-to-date registrations down 3.9 per cent.
Mike Hawes, chief executive of the SMMT, said: “September is always a barometer of the health of the UK new car market so this decline will cause considerable concern.
“Business and political uncertainty is reducing buyer confidence, with consumers and businesses more likely to delay big ticket purchases.”
Demand has fallen year-onyear since April due to a combination of factors including an increased vehicle excise duty, weaker consumer confidence and record sales in 2015 and 2016.
But September is normally a strong month for car sales, partly due to the fact licence plates indicating the age of a vehicle change on March 1 and September 1.
Demand for diesel cars slumped 21.7 per cent and petrol fell 1.2 per cent. Sales to fleet business buyers declined 10.1 per cent and to consumers fell by 8.8 per cent from 222,887 in 2016 to 200,289 this September, SMMT’s figures showed.
Howard Archer, chief economist at consultancy EY ITEM Club, said the decline in fleet demand, which accounts for around half of all car demand, was of particular concern.
“This indicates that businesses have become more reluctant to replace or add to their fleets amid weakened economic activity and a highly uncertain outlook,” he said.
Only demand for alternative fuel vehicles, namely electric and hybrid plug-in vehicles, rose, increasing by 41 per cent albeit from a very low base.
The depth of the slump in September comes despite almost all major car companies offering thousands of pounds off new models with scrappage schemes, trade-in programmes and discounts.
Business uncertainty is reducing buyer confidence. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders