The UK new car market declined by 9.3% in July, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). It was the fourth consecutive monthly fall and there was a particularly sharp fall (20.1%) for diesel cars.
The SMMT said that the market fall was in line with forecasts.
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So far the year-to-date overall performance remains at a high level thanks to a strong first quarter – with more than 1.5m new cars registered on UK roads since January.
Mike Hawes, SMMT Chief Executive, said: “The fall in consumer and business confidence is having a knock on effect on demand in the new car market and government must act quickly to provide concrete plans regarding Brexit. While it’s encouraging to see record achievements for alternatively fuelled vehicles, consumers considering other fuel types will have undoubtedly been affected by the uncertainty surrounding the government’s clean air plans.
“It is important to remember that there are no plans to charge drivers using the latest Euro 6 models and no proposed bans for conventional petrol and diesel vehicles for some 23 years. The lower demand in recent months will inevitably mean competition from manufacturers will intensify and it will be a good opportunity for consumers to get a great deal on their next car, with many exciting new models launched in the coming months.”
Demand was down across business, fleet and private buyers – with corresponding falls of -23.8%, -10.1% and -6.8%.
Sales of new petrol and diesel cars declined by -3.0% and -20.1% respectively.
The SMMT said that months of speculation about government policies on diesels has ‘inevitably led to a softening of demand and slowed the market shift to the latest cleaner Euro 6 diesels which are valued by consumers for their fuel efficiency and lower CO2 emissions’.
Sales of alternatively fuelled vehicles (AFVs) were up 64.9% and they took a new record 5.5% market share in July at 8,871 units.
Sue Robinson, Director of the NFDA, said: “The new car market remains on course for a near record year with 1,563,808 vehicles registered in the year to date and strong growth in used vehicle sales. As new diesel registrations decline, by -20.1% in the year to date, it is vital that modern Euro 6 diesel cars are not compared to older diesel vehicles. We also continue to urge the government to consider the needs of consumers and invest in electric vehicle infrastructure as the AFV market continues to grow.”
Alex Buttle, director, car buying comparison website Motorway.co.uk, highlighted issues for diesel in the UK market. “Diesel D-day’ [2040 ban on sales in UK] might be over 20 years away, but we could see new car sales continuing to fall by 10-20% a month in the near term. After all, who is going to want to buy a diesel car now – especially with the prospect of paying a hefty toxin tax in the future and falling resale values?”
