The UK new car market registered a decline of 19.8% year-on-year in the month of April as the market slumped following a record March that was boosted by a pull-forward effect to demand as new VED (annual road tax) rates came into force in April. A negative ‘payback’ affect to sales in April was widely expected.
The SMMT pointed out that the year-to-date market remains in positive territory, up 1.1% with a record 972,092 cars registered in the first four months.
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Some 562,337 new cars were sold in the UK in the record March; 152,076 cars were sold in April. April is one of the weakest months for new retail sales in the UK, as it follows the month of March’s registration (‘year identifier’) plate change.
In April, demand was down across the board, with registrations by private buyers, businesses and large fleets falling -28.4%, -21.0% and -12.3% respectively. Petrol, diesel and alternatively fuelled vehicle registrations also declined, with AFV demand down for the first time in 47 months, albeit by a marginal -1.3%.
Mike Hawes, SMMT Chief Executive, said: “With the rush to register new cars and avoid VED tax rises before the end of March, as well as fewer selling days due to the later Easter, April was always going to be much slower.
“It’s important to note that the market remains at record levels as customers still see many benefits in purchasing a new car. We therefore expect demand to stabilise over the year as the turbulence created by these tax changes decreases.”
