UK car market slumps 9.3% 05 | 10 | 2017
THE UK CAR MARKET shrunk by 9.3% to 426,170 units last month, marking the first September in which registrations declined for six years. Sales usually grow in September due to the registration plate change.
The Society of Motor Manufacturers & Traders (SMMT) has blamed uncertainty surrounding the future of diesel cars and a Brexit-induced hit to consumer confidence for the slump.
“September is always a barometer of the health of the UK new car market, so this decline will cause considerable concern,” Mike Hawes, SMMT CEO said.
“Business and political uncertainty is reducing buyer confidence, with consumers and businesses more likely to delay big ticket purchases.
“The confusion surrounding air quality plans has not helped, but consumers should be reassured that all the new diesel and petrol models on the market will not face any bans or additional charges. “Manufacturers’ scrappage schemes are proving popular and such schemes are to be encouraged given fleet renewal is the best way to address environmental issues in our towns and cities.”
Those concerns have combined to create a large decline in demand for diesel cars, registrations of which are down by 21.7% compared with September 2016. There was also a 1.2% decrease for petrol models, with 232,810 cars registered.
Ironically, the SMMT says if new diesel registrations continue on this negative trend, UK average new car CO2 levels could actually rise this year, the first time such an increase would have occurred since average CO2 emissions were recorded.
So far this year 485,067 diesel vehicles have been produced in the UK, and maintaining strong demand for the latest new diesel vehicles is essential for the health of the UK automotive sector that employs over 814,000 people.
Demand from business, fleet and private buyers all fell in September, down -5.2%, -10.1% and -8.8% respectively. Meanwhile, registrations fell across all body types except dual-purpose, which grew 2.4%.
The biggest declines were seen at opposite ends of the market with both luxury saloons and superminis falling -36.4% and 21.2% respectively.
Demand for alternatively fuelled vehicles (AFVs) continued to accelerate in September however, surging 41.0% in the month and 34.6% year-to-date, with nearly 95,000 leaving forecourts this year.
Year-to-date, new car registrations have fallen -3.9%. But, overall, the market remains at a historically high levels with over 2 million vehicles hitting UK roads so far this year.
Of the manufacturers, Ford remained the biggest producer of cars, supplying 39,696, more than two thirds of which were Fiesta or Focus models. Volkswagen was second, with 36,332 cars produced, of which 12,800 were Golfs.
The most registered model in the UK in September was the Nissan Qashqai, with 13,499 units, bringing its year-to-date total to 53,197.
But longstanding leader the Fiesta still comfortably leads the 2017 table, with 75,814 units, beating its stablemate, the Focus, which has recorded 57,256 units. The Golf remains third with 57,018 units.
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Jim McGill