The UK new car market was up 1.3% in September at 343,255 units, although the cumulative total for the first nine months stood at 1,862,271 units, some 2.5% below last year’s level.
However, the SMMT noted that September’s modest year-on-year growth needs to be seen against a base effect – the comparison is with a month last year which was 20% down on the previous year due to WLTP introduction distortions to the market.
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SMMT also said the weak UK market contrasts with other major European markets, which it said rallied in double digits for the month. While the same regulatory upheaval and last year comparison has been experienced across the EU, in the UK the market is being subdued by the added pressure of political and economic uncertainty, the SMMT said, with weak confidence stopping consumers from committing to big ticket purchases.
September’s volumes were driven by the fleet sector, which grew 8.6%. Meanwhile, private demand remained stable, up 0.1%, while business registrations declined -44.8%. Diesel registrations fell -20.3%, as petrols experienced a moderate increase of 4.5%. There was good news for battery electric cars (BEVs), which saw the biggest percentage growth of all fuel types, up 236.4% (5,414 units) as new models boosted registrations. Plug-in hybrids (PHEVs) also saw growth for the first time in six months – albeit on the back of a -22.3% decline in the same month last year. Year-to-date PHEV registrations are now -5.2% below the same period two years ago. By comparison, popular hybrid electric and battery electric cars are up 32.4% and 125.1% on the same period.
Mike Hawes, SMMT Chief Executive, said: “September’s modest growth belies the ongoing downward trend we’ve seen over the past 30 months. We expected to see a more significant increase in September, similar to those seen in France, Germany, Italy and Spain, given the negative effect WLTP had on all European markets last year. Instead, consumer confidence is being undermined by political and economic uncertainty. We need to restore stability to the market which means avoiding a ‘no deal’ Brexit and, moreover, agreeing a future relationship with the EU that avoids tariffs and barriers that could increase prices and reduce buyer choice.”
Michael Woodward of Deloitte, also said the September market growth level was disappointing and blamed Brexit uncertainty. He said: “Car sales grew by 1.3% in September compared to last year. The introduction of new 69 plates was always likely to drive sales but, when compared to a low volume month last year, this nominal growth could be a disappointment to the industry.
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By GlobalData“Overall volumes are down compared to the rest of Europe, as the market suffers from Brexit uncertainty. However, the overall shape of the market is the same, with petrol and electric vehicles (EV) showing growth and diesel sales in decline. As sales of diesel take another hit (-20.3%), problems are mounting up for the industry as a surplus stock of new and used cars affect residual values.
“Once again, we have seen the EV market (+236.4%) perform tremendously. We are seeing exponential growth in the sector suggesting that the tipping point that we have been predicting is within reach.
“Current sales of EVs could be dwarfed by demand when the new 0% company car tax rates on zero-emission vehicles come into effect in April 2020.
“As a result of these tax incentives, a greater choice of models available, and a change in consumer attitudes towards the technology, we expect EVs to be an increasingly common sight on UK roads. The largest leasing companies are already reporting double, and in some cases triple, digit growth in orders for EVs. Some leasing companies could see EVs occupy more than 50% of new orders on their books in the next two years as employers across the UK consider electric as a way to reduce both costs and their impact on the environment.
“However, the predicted growth in demand for EVs will not come without challenges. Manufacturers and dealers will need to think carefully about how they manage this growth as there is a fear that demand will outstrip supply, a significant increase in EVs on the road will put pressure on the country’s charging infrastructure and considerable investment is still required.”
SMMT data also showed that the Ford Fiesta is the top selling model in the UK this year.
Year-to-date (first nine months) sales
- Ford Fiesta (64,564 units)
- Vauxhall Corsa (47,574)
- VW Golf (46,492)
- Ford Focus (45,932)
- Mercedes A-Class (43,293)
- Nissan Qashqai (42,485)
- MINI (32,394)
- Ford Kuga (30,807)
- VW Polo (30,066)
- Kia Sportage (28,227)
