Diesel downturn proves drag as new car sales plummet

● Sagging consumer confidence and emissions confusion blamed for decline

announced plans to ban the sale of all conventional diesel and petrol powered cars over the next couple of decades in a bid to meet European Union limits on nitrogen dioxide pollution.

Ministers are also considering funding measures to cut pollution with a tax on new diesel vehicles.

SMMT chief executive Mike Hawes said: “Declining business and consumer confidence is undoubtedly affecting demand in the new car market but this is being compounded by confusion over government policy on diesel.

“Consumers need urgent reassurance that the latest, low-emission diesel cars on sale will not face any bans, charges or other restrictions, anywhere in the UK.

“We urge the government to use the forthcoming autumn Budget to restore stability to the market, encouraging the purchase of the latest lowemission vehicles, as fleet renewal is the fastest and most effective way of addressing air quality concerns.”

Alex Buttle of website Motorway.co.uk claimed the latest figures made “depressing reading for the car industry”.

He said: “Diesel’s market share is plummeting and consumers aren’t listening to rhetoric about cleaner diesel models, however much the industry drums on about it. The damage has been done.

“While it’s understandable thesmmtisnotdesertingdiesel and urging the government to act to reassure consumers that new diesel cars will be safe from toxin tax punishment, is this a lost cause?”

Howard Archer, chief economic adviser to the EY Item Club, said: “It is notable that private sales have been the weakest sector over the first ten months of 2017. This is consistent with the overall softness in consumer spending over the year so far, particularly a reluctance to make major buys.”