The UK car market declined by 12.2% year-on-year in October to 158,192 units, according to data released by the SMMT.
Diesel car sales were down by around a third in the month, prompting the SMMT to urge the government to use the forthcoming Autumn Budget to ‘restore stability to the market, encouraging the purchase of the latest low emission vehicles’.
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October’s UK market decline was the seventh consecutive monthly drop. The data showed that declines were seen across most sectors, with business and fleet demand down -26.8% and -13.0% respectively. Meanwhile, dealers reported -10.1% fewer private buyers taking delivery of new cars in the month.
However, alternatively Fuelled Vehicle (AFV) demand continued to rise, up 36.9% to 8,244 registrations, while petrol models enjoyed a more modest growth of 2.7%. However, these gains were unable to offset heavy losses in the diesel segment, as continuing consumer concerns resulted in its biggest hit yet, with demand down -29.9%.
Year-to-date, the overall market is down -4.6% on 2016 levels, with 2,224,603 cars registered in the first 10 months. This aligns with SMMT’s latest forecast for 2017, published last week, with the market expected to end the year on 2.565 million units – a 4.7% decline.
Mike Hawes, SMMT Chief Executive, 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 low emission vehicles as fleet renewal is the fastest and most effective way of addressing air quality concerns.”
Simon Benson, director of motoring services at UK motorist organisation, the AA, echoed Hawes’ comments. “With the widespread uncertainty and general confusion surrounding diesels and the potential for charges and restrictions in London and other major cities, a distinct lack of buyer confidence is the primary reason for this dramatic drop,” he said.
“We would expect to see this trend continue if the Government fails to intervene, so Mike Hawes has rightfully called for this problem to be tackled in the upcoming Autumn Statement.
“Confidence in new, cleaner diesel vehicles must be restored and consumers need to understand that no town or city has plans to charge Euro 6 diesels to enter.”
The SMMT data also showed that the Ford Fiesta was top selling model in the month and over the first ten months.
Top 10 models – first 10 months
- Ford Fiesta (83,070)
- Volkswagen Golf (62,565)
- Ford Focus (62,029)
- Nissan Qashqai (57,120)
- Vauxhall Corsa (48,315)
- Volkswagen Polo (43,158)
- Vauxhall Astra (43,116)
- Mercedes-Benz C-Class (41,281)
- MINI (38,964)
- Mercedes-Benz A-Class (37,937)
