Britain’s new car market continued its negative trend in May in the face of continued political instability, a fall in consumer confidence and uncertainty over diesel.
A total of 183,724 new cars were registered last month, down 4.6% year on year, according to figures from the Society of Motor Manufacturers and Traders (SMMT). Private consumers bought 5% fewer cars, with fleet and business custom falling by 3% and 29% respectively.
One main factor is the sustained decline in demand for diesel cars, which were down 18.3% year on year in their 26th consecutive month of falling popularity. This wasn’t offset by a modest 1% growth for petrol cars and an 11.7% rise for alternatively fuelled vehicles (AFVs).
Of the rise in AFVs, demand for petrol-electric hybrids increased by nearly 35%, with battery electric cars up 81%. However, plug-in hybrids declined 40.6% in May and 25.1% so far this year - figures the SMMT claims are directly related to the Government’s removal of the purchase grant for the vehicle type.
SMMT CEO Mike Hawes said: “Confusing policy messages and changes to incentives continue to affect consumer and business confidence, causing drivers to keep hold of their older, more polluting vehicles for longer.
“New cars are safer, cleaner and more advanced than ever and, with sophisticated safety, efficiency and comfort features as well as a host of attractive deals on offer. There has never been a better time to invest in a new car”.
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Brexit shutdowns cause UK production slump in April
