New car registrations in the UK fell 36.8% in November over the same month last year to 100,333 units, figures out today said.

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The Society of Motor Manufacturers and Traders (SMMT) said that year-to-date volume is down 10.7% to 2,023,104 units. However, the diesel market share achieved a record high of 47.0% in November.


“November has been another difficult month for the motor industry and whilst some consumers may have delayed their purchases to take advantage of the recent VAT reductions, overall demand continues to fall,” said Paul Everitt, SMMT chief executive. “Urgent action is now required to ease access to credit and finance, both to support consumers and meet the cash-flow needs of the industry.”


The SMMT said that the rate of decline has steadily risen over the past seven months and the November fall was the steepest since June 1980 (bar shortfalls in 1999 due to the move to twice yearly change in registration plate).


“The slowdown appears in line with generally weaker demand in the UK, although the move to cut VAT on 1 December may have deterred any end of month sales drive into December or next year. The VAT cut is likely to reduce an average car’s price by £250,” the SMMT said.

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Registrations over the past three months have fallen by 24.0%. Volumes were down by 242,943 units over the first 11 months of the year, with November representing almost a quarter of that decline. November typically accounts for 6.8% of annual volumes, but this year is expected to take less than a 5% share.


November’s slowdown was steeper than envisaged and suggests a market of just over 2.1mn units is likely this year, the SMMT predicts.


The market decline in November was across all sales types, fuel types and segments. Small cars weathered the decline better than most and reported an improved market share, whilst diesel penetration rose to a record 47% in November. Only private buyers can benefit from the temporary VAT cut and their volumes were down 45.1% in November.


The new Ford Fiesta was the UK’s best selling model in November, just ahead of the Ford Focus. The Focus remains the best seller over the first 11 months of the year.